Trade, Commerce & Manufacturing Sector 2017/18 – 2020/21 Plan

2.1. Increase number of value-added products 2 Unemployment rate defined by the Labour Force Survey as persons 15 years and over and who were actively looking for jobs. 7 Pillar/Outcomes Outputs 2. Increase processing activities and 2.2. Improve quality assurance standards for key processing value-addition industries

2.3. Establish quality standards for key services 3. Enhance market access and 3.1. Reduced cost of doing business visibility for Samoan goods and 3.2. Improved access to various private sector support services schemes

3.3. Improved trade balance

3.4. Increased labour mobility in foreign markets 4. Strengthen sector coordination, 4.1. Coherent sector planning and policy formulation planning and support 4.2. Accurate and timely sector statistics for planning

4.3. Strengthen capacity of sector implementing agencies

4.4. Integration of cross-cutting issues into the sector 1.3 | The Operations The Medium Term Expenditure Framework (MTEF) is a tool for linking policy, planning and budgeting over the medium-term at the Government-wide level. Under the Public Finance Management Reform Plan 2008-2013, formulation of a sector MTEF is required as the means of linking sector plans to the budget process ensuring that the actual allocation of public resources aligns with sectoral and national development priorities. The MTEF for the Trade, Commerce & Manufacturing Sector Plan 2017/18-2020/21 (TCMSP) has brought together financial and expenditure planning data and attempted to estimate total planned expenditures from all sources of finance available, primarily the TCMSP, annual budget estimates, corporate plans and feedback key stakeholders. These inputs have been used to generate the first estimates of expenditure over the period Financial Year 2017/18 – 2020/21. Given these are based on forward estimates, the quality of the data is considered variable. As the four-year rolling MTEF is implemented and estimates are updated on an annual basis through the national planning and budgeting processes, these estimates will become much more robust and accurate. The initial TCM-SP 2017/18-2020/21 Action Matrix has a total of 93 actions, filtered through 13 Outputs and 4 Overarching Outcomes/Pillars/Goals. The baseline cost for these priorities was estimated at around ST$92.9 / US$ 40.4 million over this TCM-SP period. The following core implementing agencies were identified to be directly doing activities in the initial Action Matrix: i. Three government ministries – Ministry of Commerce, Industry and Labour (MCIL), Ministry of Foreign Affairs and Trade (MFAT), and Ministry for Revenue; ii. One state-owned enterprise – Scientific Research Organisation of Samoa (SROS) iii. Two private sector organisations – Samoa Chamber of Commerce and Industry (SCCI) and Samoa Association of Manufacturers and Exporters (SAME). Moreover, the majority of actions are shared with other Sectors, with those actions more related to those other Sectors. For example, a bulk of the TCM Sector work are directly related to the Agriculture Sector, particularly those in Pillar 1 – Improve Industrial Supply and Productivity. Therefore, the following agencies are also included in the Sector MTEF: i. Two government ministries – Ministry of Agriculture and Fisheries (MAF) and Ministry of Health (MOH); ii. One state-owned enterprise – Samoa Trust Estates Corporation (STEC); iii. One private sector organisations – Women in Business Development Inc. (WIBDI) 8 2 | INTRODUCTION Samoa, determining the gaps and identifying what the Government is doing to address them. Moreover, the DTIS was used to secure funding from the Enhanced 2.1 | Background Integrated Framework (EIF) which accelerated the The adoption of the SWAP by Government of Samoa institutional establishment of the Sector bodies (Steering (GOS) in 2005 has successfully brought together Committee and Coordination Unit). The TCM Sector is government Ministries and agencies, development the driving force for Key Outcomes 3 and 5 of the SDS partners, private sector organisations, NGOs and CBOs 2016/17-2019/20, respectively being: ‘Export Products to work collaboratively towards a common goal. Increased’; and ‘Participation of Private Sector in Development Enhanced’. Figure 1: Sector-wide Approach to Planning _NGOs/CBOs -•Government .. .___I_I • - Development Private Sector 2.2 | Sector Development Initially, the TCM-SP stipulated activities under six Sector Policy Objectives (SPOs). However, a capacity assessment was conducted in 2013 where it was foreseen, among other things that the best way forward • Development Partners for the sector is to group the six SPOs into five pillars. The sector subsequently commissioned a Medium Term Expenditure Framework (MTEF) exercise in 2014 to develop a three-year rolling budget for the sector. In this exercise, the Pillar approach was further refined to This approach is further justified by the four collective institute a value-chain approach. pillars of the Strategy for the Development of Samoa Figure 3: Development and Refining of TCM Sector Planning (SDS) 2012-2016: Economic, Social, Infrastructure, and Environment. In light of this, the SDS provides the overarching framework where sector initiatives are hinged upon and geared towards “Accelerating Sustainable Development and Broadening Opportunities for All”. Initial TCM-SP 2012-16 Figure 2: Scope and Chain of Planning • Strengthen sector policy, legal, regulatory and strategic Capacity planning; Assessment • Enhance the enabling MTEF SDS environment for the private • Pillar 0 – Sector sector as the main engine for Coordination and • Pillar 1 - economic growth and enhance Support – covering Industrial its productivity, value adding SPO 1 Supply and and trade capacity; • Pillar 1 – Private Productivity Sector Plans • Enhance the effectiveness of sector • Pillar 2 - market and the growth of development – covering SPO 2 Processing commercial activities and and Value- create a level playing field for • Pillar 2 – Domestic trade and market adding all in the domestic market; Corporate regulation – • Pillar 3 - • Boost Samoa’s capacity to Plans engage in and reap the gains covering SPO 3 Market from trade through enhancing • Pillar 3 – Foreign Access competitiveness, reducing Trade – covering • Pillar 4 - trade deficit to sustainable SPO 4 Sector levels and promoting export; • Pillar 4 – Support and • Create a conducive Manufacturing and Planning Management environment for industrial linkages – Framework Plans development and boost the covering SPOs 5 manufacturing sector in and 6 Samoa; and • Enhance linkages and spill- overs among productive sectors. The TCM Sector eventuated after the DTIS conducted in 2010 amplified, among other things, the strong links between the trade, commerce, and manufacturing sectors. The DTIS also assessed the trade context in 9 3 | TCM-SP 2012-2016 3.3 | Relevance and Appropriateness REVIEW The TCM-SP has been an integral part of the Samoa Strategy for Development 2012-2016 to ensure “Boosting of Productivity for Sustainable Development” and 3.1 | Overview of Review features measures to revitalise exports and support the Recognizing the necessity for improving its trade agriculture and manufacturing sectors. The TCM SP is prospects and opportunities, the GoS developed the also linked to relevant regional and international policies Trade, Commerce and Manufacturing Sector Plan (TCM- and regulatory frameworks and obligations. SP) 2012-2016. The TCM-SP established a road map aimed at diversifying the production base and put in place A number of Sector Plans have been developed since the an inter-governmental coordination mechanism for TCM-SP, and have reflected cross cutting activities for implementation. The TCM-SP has also built upon the the Sector. This is a reflection of collaboration and Trade Policy Statement 2008, the National Export integration across the board and not in isolation. Strategy for Samoa 2008-2012 and the 2010 DTIS. 3.4 | Effectiveness and Efficiency The TCM-SP’s main aim was to boost structural transformation, value addition and exports. More The value chain approach streamlined the activities of the specifically, the TCM-SP was designed to achieve six TCM-SP to be more direct and precise in implementation. sector-wide policy objectives within a four-year timeframe In light of this, the TCM-SP eventuated to encompass four from 2012 to 2016. The TCM-SP was initially built around pillars: four pillars (1) Private Sector Development, (2) Domestic - Pillar 1: Industrial Supply and Productivity; Trade and Market Regulations, (3) Foreign Trade and (4) - Pillar 2: Processing and Value Addition; Manufacturing and Linkages. - Pillar 3: Market Access; and - Pillar 4: Sector Support and Planning Framework 3.2 | TCM-SP Design and Institutional Arrangements Substantial work has been made under these pillars As part of the ongoing monitoring process for the sector, which to some extent have reached the target level with subsequent changes were made to the TCM-SP results most as ongoing and will roll over into the new Sector framework and pillars based on the recommendations of Plan. These are further detailed in section 5. the 2013 Capacity Assessment and 2014 Medium Term Expenditure Framework (MTEF). 3.5 | Impact and Sustainability The continuous refinements to the TCM-SP over the last The refinements were made to better capture the four years has proven to be successful in ensuring sequencing of sector priority activities using a value chain participation from various stakeholders. This has led to approach. The refined sector plan now has four pillars boosting confidence of the major development partners and 15 outputs and contains a number of prioritized to continually finance sector initiatives such as the Trade activities to be implemented through the annual Sector Support Programme and the Private Sector government budget process. Support Facility. Several committees have been established as governance mechanisms to facilitate and coordinate the TCM-SP with a broader set of stakeholders. These include the Trade Commerce and Industry Board, National Working Committee on Trade Arrangements and TCM Sector Steering Committee. Given the ongoing reforms, institutional arrangements must be continuously facilitated and reviewed so that the frameworks in place and governance structures provide an enabling environment to those it exists to serve. 10 4 | THE SITUATION The GDP growth rate over the assessed five-year period is 1.7% compared to the targeted growth of 3-5% per annum envisaged in the SDS 2012-2016. At this rate we This section provides an overview of the TCM Sector can expect a GDP growth rate of 3.1% for this 2017/18- Performance since Financial Year (FY) 2011/12 or 2020/21 planning period. However, in anticipation of Calendar Year (CY) 2012. A brief snapshot of economic another major natural disaster, the Samoan economy is statistics was developed to identify defining trends in the optimistically envisaged to grow 2.17% (3.1% - (0.30 × sector since the TCMSP 2012-2016 was launched. 3.1%) over the period. The growth will mainly be driven Based on data collected through the national agencies by the commerce sector, with support from the revamped including Central Bank of Samoa (CBS) and Samoa and revitalised agriculture, fisheries and manufacturing Bureau of Statistics (SBS) trends identified were sectors. categorised into three areas (i) SDS Key Outcome One – Macroeconomic Resilience Increases and Sustained; (ii) 4.1.2 | Inclusive Growth, Poverty Reduction and SDS Key Outcome 3 – Export Products Increased; and (iii) SDS Key Outcome 3 – Participation of Private Sector Sustainable Development in Development Enhanced. To ensure consistency, the Based on a recent monitoring report on Samoa’s analysis will mostly use data for the period FY2011/12- progress since graduation in 2014, the level of aid flows 2015/16 and CY2012-2016, unless it is stated otherwise. from major development partners did not seem heavily impacted, with Australia accounting for an average 34% of net overseas development assistance (ODA) 4.1 | SDS Key Outcome One – disbursement to Samoa in 2011-15.3 Samoa’s total ODA Macroeconomic Resilience Increased and estimate for 2016/17 budget was $100.8 million. Sustained Figure 5: Samoa Average ODA by Source, 2011-15 4.1.1 | Macroeconomic Performance Negative impact on growth derived from natural disasters of 2009 and 2012. This was reflected in the -1.9% GDP growth in 2012/13. Positive impact from post-Cyclone Evan reconstruction, and hosting major events like 2014 Small Islands Development States (SIDS) Conference and 2015 Commonwealth Youth Games has resulted in New Zealand (16%) Other 16% slightly improved total GDP. The GDP level before Cyclone Evan recovered in 2014/15. Figure 4: GDP Growth Trends, 2011/12-2015/16 1.90 EU Special 1.80 y = 1.6354e0.0172x Institutions Funds R² = 0.578 Japan (15%) (13%) 13% SAT $ (billions) Source: OECD-DAC Data, June 2017 1.70 Overall, the monitoring report indicated Samoa has 1.60 managed to maintain high levels of human capital and national income. However, Samoa still continues to be highly vulnerable to external shocks due to its export 1.50 structure, high portion of low lying areas, and small 2011/12 2012/13 2013/14 2014/15 2015/16 population size. Hence, diversification of Samoa’s Real GDP Expon. ( Real GDP) economic structure through agriculture and fisheries also Source: CBS Quarterly Bulletin (E6 – GDP at Market Prices by Industry), May 2017 remain highly vulnerable given its susceptibility to natural disasters. 3https://public.tableau.com/views/OECDDACAidataglancebyrecipient_new/Recipients?:embed=y&:display_count=yes&:showTabs=y&:toolbar=no?&:showVizHo me=no 11 Figure 6: Bilateral ODA by Sector, 2014/15 average Figure 7: Samoa Hardship & Poverty Report 2013/14 Trends 56% HUMANITARIAN AID 47% 43% HEALTH AND POPULATION PRODUCTION 27% 23% 19% MULTISECTOR 11% 5% 4% EDUCATION 2002 2008 2013/14 OTHER SOCIAL INFRASTRUCTURE & SERVICES --0- Inequality ECONOMIC INFRASTRUCTURE & SERVICES --0- Basic needs poverty in rural households 0% 10% 20% 30% --0- Food poverty Source: 2013/14 Household Income and Economic Survey Source: OECD-DAC Data, June 2017 Poverty and hardship was seen to be exceptionally higher To try and capture the extent of the inclusiveness of among the unemployed and individuals working, mainly, growth since 2010, the analysis has focused on the in the informal sector (including unpaid family and Samoa Hardship and Poverty Report supplemented by community work, household’s duties and subsistence consultations with the Savaii business and grassroots production). It was noted that within the formal sector, community. Site visits of a number of projects in Savaii government and public sector employees are better off in was undertaken where the cocoa improvement comparison to their counterparts in the private sector. programme facilitated by the Whitakers Chocolate group in New Zealand linking with a cocoa grower and producer The most vulnerable groups include retirees and students in Savaii for the sourcing and export of cocoa, is an (part-time and full-time). Approximately 31% of the example highlighting the important relationship between extremely vulnerable live in North-West Upolu and are inclusive growth and trade. The recently launched ADB working primarily in subsistence agriculture. Interestingly, Trade Finance Programme will benefit grassroots trade this is in contrast to people in the informal sector in Savaii related projects by providing financial support such as who are significantly better off than their counterparts in pre-export finance to facilitate trade: the informal sector in other regions. Hence, geographical location and economic activity (combined) are strong The 2013/14 results of the Household Income and determinants of poverty and vulnerability. This is Economic Survey (HIES) have been utilised for the suggested as a good basis for characteristics-based update of the Samoa Hardship and Poverty Report. The targeting of poverty. following are the key trend noted in the Report.  The average incidence of basic needs poverty in rural households has improved to 18.8% in 2013/14 These trends also highlight the vulnerability of the when compared to 26.9% in 2008 and 22.9% in Samoan economy given the significant changes in 2002. inequalities over a relatively short span of time. Overall, geographical disparities and pockets of high poverty in  The incidence of food poverty4 at the national level North-West Upolu and Apia Urban Area will require timely has been declining given the proportion of population targeted interventions to effectively arrest and reverse the affected has dropped to 4.3% in 2013/14 compared adverse inequality trends. to 4.6% in 2008 and 10.6% in 2002.  Inequality has worsened by 13% nationally, with the situation being most acute in the Apia Urban area. 4While poverty in Samoa does not mean hunger or destitution in the traditional sense of its understanding; but families constantly have to make choice between the competing demands for household expenditure and the limited availability of cash income to meet those expenses. Households deemed to be experiencing basic-needs poverty are therefore facing hardship on a daily basis, where they struggle to pay bills and purchase adequate and suitably nutritious food. 12 4.2 | SDS Key Outcome Three – Export 4.2.1 | Trade in Goods Products Increased Samoa’s merchandise trade balance has averaged at approximately SAT$ -700 million over the period Samoa’s balance of payments (BOP) is characterized by FY2011/12 – FY2015/16. a large deficit in the balance of goods and a significant surplus in the balance of services as well as substantial Figure 8: Percentage of Export by Commodities 2011/12-2015/16 transfer inflows (remittances). The BOP fluctuates significantly and has weakened since 2012 where it recorded deficits in FY2012/13 and 2013/14 following the natural disasters, and again in 2015/16. Nevertheless, 5% 6% international reserves have declined since 2012, although still considered to be at comfortable levels Re-exports Domestic Exports ~3% (55%) 8% (above the medium term benchmark of 4.0 months of (45%) 19% import of goods cover) for maintaining the country’s long 4% term international viability. Table 1: Balance of Payments 2011/12-2015/16 • Fish • Beer De9cription 2011/12 2012/13 2011114 201<4/U 20U/16 • Nonu Juice ■ Taro :Balance a, -705.5 -643.9 -719.4 -714.8 -700.4 • Coconut & by-products • Other Tra<le in ~ Source: CBS Quarterly Bulletin (B5 – Exports by Commodities), May 2017 Goods / "-... Balance a, 248.4 268.1 259.5 The export base has not diversified much over the Tra<le in assessed period, with only nine major export Sen/ices commodities (average value = SAT$ 32 million for BALANCE -421.6 2011/12-2015/16 period) plus re-exports (average value ON GOODS = SAT$ 37 million for 2011/12-2015/16 period). & SERVICES Figure 9: Value of Exports by Commodities 2011/12-2015/16 18.Hceoo -38.8 -48.4 Primiry ~ Income 2015/16 BALANCE ON GOODS, SERVICES & 2014/15 PRIMARY ACCOUNT 2013/14 :Salance a, Secaldary Income 2012/13 CURRENT ACCOUNT 2011/12 BALANCE CAPITAL 0 10,000 20,000 30,000 40,000 ACCOUNT SAT$ (000's) BALANCE FINANCIAL ■ Re-exports ■ Other ACCOUNT ■ Coconut & by-products ■ Taro ■ Nonu Juice ■ Beer BALANCE NIE ■ Fish NET ERRORS & Source: CBS Quarterly Bulletin (B5 – Exports by Commodities), May 2017 O~IISSIONS Fresh fish accounts for approximately 43% of total OVERALL BALANCE - -- 1111 - Source: CBS Quarterly Bulletin (B1 – Balance of Payments), May 2017 domestic export value, with the remaining comprising of coconut and coconut by-products, noni juice and by- products, beer, taro and others. The export products are 13 mainly destined for Australia, New Zealand and American the North American market has decreased. The imports Samoa. from the European and Asian markets, significantly fluctuate for the assessed period. Imports has averaged at SAT$ 768 million over the assessed period. This is generally comprised of 30% 4.2.2 | Trade in Services & Transfer Inflows minerals, chemicals and allied industries (petroleum and Samoa’s economy continues to be dominated by services by-products), 25% is food, 13% is machinery excluding with 80% attributed to service based industries, 10% to transport equipment, and the remainder making up other industry and 10% to agriculture and fisheries. The imports. balance of trade in services has a growth trend of 4.5% over the assessed period. The surplus (averages at SAT$ Figure 10: Value of Imports by Commodity type 2011/12-2015/16 276 million; Credit SAT$ 475 million; Debit SAT$ -199 800,000 million) is attributed to travel which is the determining factor for trade in services trend. 600,000 SAT$ (000's) Figure 11: Trade in Services trends, 2011/12-2015/16 400,000 -90.00 -60.00 -30.00 0.00 30.00 60.00 400.00 200,000 0 ■Minerals, Chemicals & Allied Industries (30%) ■Food (25%) ■ Machinery, mechanical & electrical (13%) 300.00 ■ Plastic, Rawhides/skins, Wood & Paper-related (10%) ■ Stone and Metals (9%) ■ Vehicles & Transport equipment (5%) ■ Others (5%) ■ Textile & Footwear (3%) D TOTAL Source: CBS Quarterly Bulletin (B8 – Imports classified by broad HS Classification), May 2017 200.00 ~",,'), \◊ Efforts are currently underway through key initiatives -- t-,,"'Y t-,,"I, "I,<) '),<) such as the EIF Tier II funded Trade Sector Support Telecommunication services Programme and the Samoa Agricultural Competitiveness Transport Enhancement Project to improve the trade balance Other Services through increasing the consistent supply of coconut, Computer and information services cocoa (TSSP) as well as domestic production of livestock - --<r Balance on Trade in Services (sheep, cattle, chicken etc.), fruits and vegetables ---<r Travel (SACEP). Moreover, it is envisaged for the 2017-2021 Source: CBS Quarterly Bulletin (B3 – Service & Income Account), May 2017 period, to note a significant reduction of approximately SAT$ 55.0 million per annum of petroleum (particularly diesel) on the basis of the commitment by the Net direct investment (asset on liability) has averaged Government for Samoa to produce electricity 100% from SAT$ -36.6 million in 2011/12 - 2015/16; although a renewable energy sources as part of its renewable deficit in growth there is indication of a move towards energy programme. positive growth and reinvestment of earnings. Foreign investment trends indicate an overall improvement in the The dominant source markets for imports continue to be number of registered Foreign Investment Enterprises with New Zealand 29%, Singapore 22% (for petroleum a total of 80 renewals in 2015/16 which has more than products), USA 11% and USA 10%, and 9% each from doubled since 2009/10. The key sectors driving the Australia and Mainland China. The imports from our growth include Professional Services and Retailing. In regional market is steadily increasing, while those from addition to this, SIFA has incorporated 36,658 companies 14 since 2010 and expanded the services and products on Industrial Production Index (IPI) measures change in offer via the online registry. industrial production and is widely used for the observation and analysis of the current economic activity. Total remittances averaged at SAT$ 345 million (20% of Samoa’s IPI is tracked through 14 products by the CBS. Real GDP) in 2011/12-2015/16. Main sources markets The key products that have significant index increases for are New Zealand, Australia, USA and American Samoa the 2010/11-2013/14 period include ready-mix cement, with growth in all markets since 2010 except for USA ice-cream, roofing iron, paints, and miscellaneous which has dropped by 25%. The main channel of funds is products (copra meal, soap, toilet tissue, tobacco and non-banks (average of 76%) and banks (average of 24%) salted beef). However, economic activity is dominated by with banks reducing from 29% in 2010 to 16% in 2015. ready-mix cement, electricity, beer, cigarettes and miscellaneous products for the same assessed period. 4.3 | SDS Outcome Five: Participation of Industrial production of coconut oil, timber and corned Private Sector in Development Enhanced meat, on the other hand has registered a decline in the domestic market which further highlights minimal value 4.3.1 | Economic Activity addition for these products being exported. The main contributing industries to GDP are commerce, construction, agriculture and fishing, manufacturing, Table 2: Percentage change in Industrial Production Index Products Base Average Weight %Change public administration, transport and communication, and Weight (2010/11 – finance and business service. The Commerce Sector, (1997) 2013/14) comprising mostly of retailing businesses contributes an Beer 0.22 0.10 -53% average 31% to national GDP. The Manufacturing Sector Electricity 0.17 0.12 -32% accounts for an average 10%, through food and beverage Soft Drinks 0.13 0.05 -58% manufacturing as well as other manufacturing. Coconut Oil 0.11 0.00 -100% Cigarettes 0.09 0.10 6% Figure 12: GDP by Industry, 2011/12-2015/16 Timber 0.06 0.00 -100% Coconut Cream 0.04 0.02 -54% Ready-mix 0.04 0.28 598% cement Concrete blocks 0.04 0.06 58% Paints 0.02 0.06 175% Ice cream 0.02 0.09 334% Roofing iron 0.01 0.03 177% Corned meat 0.01 0.00 -100% Miscellaneous 0.04 0.10 150% Products Source: CBS Quarterly Bulletin (E1 – Indicators of Industrial Production), May 2017 4.3.2 | Doing Business in Samoa The enforcing of the Companies Act 2001 and the shift to an online Companies Registry in 2013, has allowed businesses to incorporate/register their companies Commerce (31%) online; streamlining procedures, and significantly Construction (11%) reducing timeframe and cost for starting a business. Agriculture & Fishing (10%) Nonetheless, the World Bank Ease of Doing Business Manufacturing (10%) Survey shows that Samoa’s ranking has worsened its Public administration (8%) overall doing business ranking since 2010. However, this Transport & Communication (7%) does not present a full picture of where we are, and this Finance/Business services (6%) is why the Distance to Frontier (DTF) measure is a more Ownership of dwellings (5%) realistic measure for Ease of Doing Business. Electricity & water (4%) Accommodation & Restaurants (2%) Personal & other service (-1%) The DTF score shows how far on average an economy is at a point in time from the best performance achieved by Source: CBS Quarterly Bulletin (E6 – GDP at Market Prices by Industry), May 2017 any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 15 0 and 100, with 100 representing the frontier. There has 67% male and 33% female. A majority have obtained at been no significant change in ease of doing business in least secondary level education and are mostly based in Samoa, as shown in Figure below. The only notable North West Upolu (NWU) and Apia Urban Area (AUA). trends are: Getting Electricity; Dealing with Construction Permit; and Registering Property slightly decreasing. Figure 14: Labour Force Participation 2013 Paying taxes has a slightly growing trend, and Trading ., 0. 75+ Across Borders significantly decreased in 2016. ::, C: eg 70- 74 Accessing/Getting Credit and Resolving Insolvency c, ~ Cl) :, 65-69 g. 60-64 remains our most problematic areas. c, .. Q. 55.59 Cl - I: (I) :g 2 50-54 Figure 13: Samoa Doing Business Indicators (DTF), 2015-2017 0 .... 45-49 Starting a Business !~ .. C0 40-44 C> <o Cl) 35 • 39 Dealing with Construction Permits .J 30-34 Getting Electricity s:, { 25-29 20 • 21 Registering Property ~ 15-19 Getting Credit 10 -14 Protecting Minority Investors 5.9 Paying Taxes 0-4 Trading Across Borders Enforcing Contracts Proportion of the total population Resolving Insolvency estimated at 191,000in 2013 1 As defined by the Samoan Labour Force Survey 100 Source: Labour Force Survey 2013 The national unemployment rate5 was 6% or a total of 2,720 persons looking for jobs in 2011 compared to 1.3% 80 in 2006 as noted in the DTIS 2010. There is relatively high unemployment in Northwest Upolu (6.7%) and Rest of Upolu (5.9%) compared to Apia Urban Area and Savaii. Young females are the most vulnerable given their high 60 unemployment in age groups 15-19 years, 20-24 years and 25-29 years. It is noted that the subsistence economy where agricultural production, informal manufacturing 40 and fishing will always provide alternative work in the villages if paid jobs are not available elsewhere. Given the relatively young working population there is 20 now an emphasis on supporting youth entrepreneurship and the development of micro and small-businesses. This is reflected in the new Samoa National Employment Policy 2016, National Youth Policy 2016-2020 and the 0 2015 2016 2017 Economic Empowerment objectives of the Community Sector Plan under MWCSD. Source: World Bank Doing Business Survey 2017 4.3.3 | Labour Force The median age in Samoa is 20.5 years, making it a relatively young population. Approximately 68% of total population falls within the working age group (15 - 65 years); whereas only 18% (34,530 persons) of total population is engaged in formal paid employment with 5 Unemployment rate defined by the Labour Force Survey as persons 15 years and over and who were actively looking for jobs. 16 5 | THE PLAN Vision Sustainable trade, commerce and Mission Goals manufacturing for Maximise gains from enhanced growth and 1 - Improve Industrial Supply trade and enhance and Productivity development private sector 2 - Increase Processing development to increase Activities and Value-addition income generation 3 - Enhance Market Access opportunities for and Visibility for Samoan sustainable livelihoods. Goods and Services 4 - Strengthen Sector Coordination, Planning and Support 5.1 | Vision weaknesses of trade in goods while also capitalising on the strengths of trade in services. More specifically for The Sector’s vision is “Sustainable trade, commerce and trade in goods: export value needs to be increased; and manufacturing for enhanced growth and development”. import value needs to be normalised. In projection The vision encapsulates the work of the Sector and figures, total export value for goods is estimated at SAT$ linking it to the overarching SDS vision of “Accelerating 100 million; total import value for goods at SAT$ 797 sustainable development and broadening opportunities million; and balance on trade in goods at SAT$ -697 for all”. million. Translating this into action is through the achieving of the Figure 15: Export Value (Actuals & Projections), 2011/12-2020/21 targeted GDP optimistic growth of 2.17% (3.1% - (0.30 × 120.00 3.1%) over the 2017/18-2020/21 period. The growth will mainly be driven by the commerce sector, with support 100.00 from the revamped and revitalised agriculture, fisheries and manufacturing sectors. 80.00 SAT$ MILLIONS 5.2 | Mission ,,,.----- ,, 60.00 The Sector’s mission is to “Maximise gains from trade and 40.00 enhance private sector development, to increase income generation opportunities for sustainable livelihoods”. The 20.00 Sector mission directly captures the work anticipated by the GOS for Key Outcome 3 – Export Products Increased - and Key Outcome 5 – Participation of Private Sector in Development Enhanced, of the SDS 2016/17-2019-20. 5.2.1 | SDS Key Outcome Three – Export Products Export Domestic Export Re-exports Export Total Increased Source: Actuals from CBS Quarterly Bulletin (B2 – Merchandise trade), Forecasts The target anticipated by the TCM-SP 2017/18-2020/21 calculated by Muliufi Nickel under SDS Key Outcome 3, is to address the 17 The outlook for goods export is also envisaged to Figure 17: Balance on Trade in Goods (Actuals & Projections), 2011/12-2020/21 significantly fluctuate subject to growing fish exports to China (Hong Kong), increased coconut by-product 2020/21 exports to USA, revamping of the cocoa route to New Zealand, and the impact of the reversed EU ban on kava 2019/20 for medicinal purposes. However, we have to be mindful 2018/19 of unpredicted natural disruptions (like natural disasters and harmful pests) that directly impact the supply chain 2017/18 for all products. 2016/17 Figure 16: Import Value (Actuals & Projections), 2011/12-2020/21 2015/16 900.00 2014/15 800.00 700.00 .,./ - 2013/14 2012/13 600.00 2011/12 SAT$ MILLIONS 500.00 400.00 (740.00) (720.00) (700.00) (680.00) (660.00) (640.00) (620.00) (600.00) 300.00 SAT$ MILLIONS / .... . ---- Source: Actuals from CBS Quarterly Bulletin (B2 – Merchandise trade), Forecasts 200.00 100.00 """' -I - I ' I,,,' calculated by Muliufi Nickel For trade in services, it is obvious that travel is its - I 1111 I I determining factor. Hence, it is envisaged for travel to grow in-line with the revamping of the Faleolo Import Total Import Government International Airport and the increasing of number of Import Petroleum Import Other airlines servicing Samoa, as well as number of flights to Source: Actuals from CBS Quarterly Bulletin (B2 – Merchandise trade), Forecasts and from Samoa. calculated by Muliufi Nickel Figure 18: Balance on Trade in Services Actuals, 2011/12-2015/16 The normalising of imports is envisaged through the 400.00 decrease in the value of petroleum imports by approximately SAT$ 55 million per annum, on the basis of the commitment by the GOS to increase electricity 300.00 production from renewable energy sources.6 Moreover, the impact of the Trade Sector Support Programme (EIF SAT$ MILLIONS Tier II); the work done by the Agriculture Sector in import 200.00 substitution; and promotion of local produces for wellness by the Health Sector, are all expected to come into fruition 100.00 over the planned period. The projected value for balance on trade in goods is 0.00 cc.:::.;;; SAT$ -697 million at end of FY2020/21, and noting the 2011/12 2012/13 2013/14 2014/15 2015/16 above fluctuations it may be best to assign a ±0.15 weight -100.00 to accommodate those changes. Hence, the best case scenario for Samoa’s trade in good balance is SAT$ -592 Balance on Trade in Services Computer and information services million (-697 + (0.15 × 697)) and the worst case scenario Other Services amounts to a value of SAT$ -801.55 million (-697 + (0.15 Transport × 697)). Travel Telecommunication services Source: Actuals from CBS Quarterly Bulletin (B3 – Services and Income account) 6 Electric Power Corporation Corporate Plan 2016-18 18 The projected value for balance on trade in services is where we can tie in remittances, as possible re- SAT$ 310 million at end of FY2020/21, with an assigned investment sources. With these aspirations and upwards weight of ±0.15 to accommodate fluctuations. Hence, the trend of the national Real GDP, we foresee the achieving best case scenario for Samoa’s trade in services balance of envisaged growth with a value of SAT$ 2.11 billion by is SAT$ 356 million (310 + (0.15 × 310)) and the worst 2020/21. case scenario amounts to a value of SAT$ 263 million (310 + (0.15 × 310)). Figure 19: Real GDP forecast based on FY11/12-FY15/16 figures 2.11 Noting these projections, we anticipate for the Balance on 2.05 Trade in Goods and Services to have an anticipated base 1.86 1.92 1.98 l SAT$ BILLIONS case figure of SAT$ -387 million. The worst case scenario 1.83 figure forecasted for this planning figure is SAT$ -538.55 1.72 1.70 1.69 and the best case scenario figure is SAT$ -236 million. 1.67 5.2.2 | SDS Key Outcome Five – Participation of Private Sector in Development Enhanced The Sector aims to strengthen the Public Private Partnership (PPP) concept with its stakeholders, in-line FINANCIAL YEAR with the Government’s objective of ‘Enhancing the Source: Actuals from CBS Quarterly Bulletin (E6 – GDP at Market Prices by Industry), participation of Private Sector in national development’ Forecasts calculated by Muliufi Nickel (SDS: Key Outcome 5). Moreover, the TCM envisage the ongoing Government assistance to the Private Sector The Private Sector Organisations (PSO) grant will and enhancing their capacities to conduct business. The continue as a Transactions on Behalf of the State, Sector also foresees the strengthening of public-private contributing to private sector organisations such as SCCI, partnership through continuous market testing of State- WIBDI, SAME, SFA etc. The sector will ensure PSO owned Enterprises (SOEs) and the outsourcing of these grants will increase to benefit all PSOs and CBOs to entities in order for the Private Sector to thrive. promote inclusiveness in private sector participation in activities supported by their respective funding as well as In this regard, the Sector anticipates market failures developing strict guidelines to ensure appropriate use of where we will have to intervene to mitigate and address. these funds. At the same time aiming to create a conducive and enabling business, and working environment for the Financing plays a major part in private sector Private Sector, while also protecting the values and rights development and if the bulk of our operations are of Consumers. In this understanding, we hope to build our agriculture-based, then we are looking at high-risk Nation on a fair and just platform, hinging on our National business ventures. Therefore, we note the changes development goal of “Accelerating Sustainable anticipated by the Development Bank of Samoa (DBS) Development and Broadening Opportunities for All”. where they endeavour to reorient their operations to its agriculture and small business with initiatives that include: Furthermore, we note the continuous attempt of partnering with the Small Business Enterprises Centre Government to achieve the ‘one-stop-shop’ concept to (SBEC), an ongoing relationship where SBEC provides a enhance the facilitation of procedures and processes. In crucial guarantee mechanism for clients who have line with the Public Service Functional Analysis 2016, we insufficient collateral to apply for financing on their own; come closer to this concept with the transitioning of the working with the Samoa Agriculture Competitiveness Seasonal Worker’s Scheme under the Ministry, as the Enhancement Project (SACEP), a World Bank funded Labour Employment Export Programme (LEEP). matching grant initiative to support farmers; and Moreover, there is also the transitioning of the Business improving their Micro Credit Facility, to assist women with License registration to MCIL, which then centralises the no existing access to banking services; thus providing whole business set-up and registration process. micro credit funds to promote participation within the economy. This is a complementary service, noting that In terms of Economic Activity, the TCM envisages the the traditional banking institutions remain in business to increasing of development momentum through support new ventures and the Samoa Agri-Business revamping agro-processing work, particularly with Scheme is also assisting with the accessing by agri- traditional products. Investment is an issue, and this is businesses of credit. 19 5.3 | Goals/Outcomes/Pillar Approach In terms of services, there is low employment levels in key industries which indicate further support is needed to The Sector Pillars are the goals/outcomes that we enhance the skills being promoted through the foresee as operational stepping stones for the Sector’s Apprenticeship Programme and Trade Testing mission in trying to achieve its vision. The Pillar approach Programme. Collaborative relations between MCIL, enables the streamlining of TCM activities to be more Ministry of Women, Community and Social Development direct and precise in implementation. In light of this, the (MWCSD), Samoa National Youth Council (SNYC), and TCM-SP 2017/18-2020/21 encompasses four pillars: 1 – other stakeholders need to be strengthened to create a Improve Industrial Supply and Productivity; 2 – Increase clear vision for national employment, specifically youth Processing Activities and Value Addition; 3 – Enhance and female employability. Market Access and Visibility for Samoan Goods and Services; and 4 – Strengthen Sector Coordination, Table 3: Pillar One - Improve Industrial Supply and Productivity Planning and Support. Actions Output 1.1 – Improved productivity of key industries

1.1.1 All stakeholders must work in a durable value chain 5.3.1 | Pillar One – Improve Industrial Supply and partnership with a view of transforming the largely Productivity subsistence economy in Samoa. To achieve this, Pillar one of the sector ‘Improve Industrial Supply and serious efforts must be planned and implemented with Productivity’ is the first stepping stone to enabling the the objectives of developing a conducive environment operating environment for the private sector as the engine that would attract large commercial ventures into the for economic growth and enhance its productivity, value Samoa primary sector.

1.1.2 Transform the informal sector in Samoa so that it adding and trading capacity. The standard value-chain is provides decent employment and increased built upon the success of a robust supply, and this is the productivity. aim of Pillar One. 1.1.3 Increase sensitization of both men and women regarding the Trade Schemes offered by MCIL for Figure 20: Pillar One - Improve Industrial Supply and Productivity skilled workers without formal certification. Outputs 1.1.4 Carry out value-chain analysis of potential traditional/tropical products P1 - Improve Industrial

1.1.5 Adopt a cluster development approach, establish Supply and Productivity business incubators and encourage businesses to network and cluster to achieve economies of scale and reduce unit costs of common overheads. Establish a 1.1 - Improve productivity of national networking database under NPSO with the key industries assistance of MCIL

1.1.6 Limit foreign retailers of imported goods in the rural communities 1.2 - Consistent quality and 1.1.7 Tailor and enhance more training programs in quantity of primary sector business management, accounting, customer care supply and etc. through institutions such as SBEC

1.1.8 Integrate rural subsistence into the urban monetized It is noted that the productivity level in Samoa is not yet economy by focusing in rural development initiatives based on value chain principles. sufficient to service the full capacity of existing markets, Output 1.2 – Consistent quality and quantity of primary and also compete in other international markets. There is sector supply also a need to address the growing import balance by 1.2.1 Promote use of codex standards, codex and facilitating and promoting import substitution. Significant guidelines as the basis for national standard funding support (currently provided through MAF to development. Promote the development and increase production of crops, livestock and fisheries) has enhancement of the capabilities of the National Codex not resulted in increased agriculturally based exports. Contact Point (CCP), the Samoa National Codex Council (SNCC), delegates and stakeholders on their Alternative implementation modalities may be needed to core functions and to expand the engagement with the ensure increased production of priority products such as public on Codex updates. coconut and cocoa. Further support is also needed for 1.2.2 Address the existing imbalance between labour supply research projects to improve the consistency of quality and labour demand. Enhance the relevant skills and quantity of selected plant and food products. Focus acquired by the workforce and what is needed by on climate resilient crops and livestock is also essential. employers.

1.2.3 Provide direct support for local entrepreneurs that have high employment potential. Also eliminate 20 obstacles that constraint youths from participating in are higher for products that have been processed such productive employment. as virgin coconut oil. Therefore, it is a need to improve

1.2.4 Put in place effective and efficient centres that will access of businesses to post-harvest equipment and provide employment services including the registration for those seeking employment. facilities that will raise the value of products and further

1.2.5 Enhance the business mind-set and capacity among development of products that have higher commercial business owners, subsistence and semi-commercial value is also critical. crop growers/farmers.

1.2.6 Enhance technical advice and capacities on farming The GOS through MCIL is continuously looking at ways management, specifically crop farming cycles and to develop these industries and accordingly facilitate and maintenance of a resilient/consistent supply of goods. promote private sector investment. These GOS initiatives

1.2.7 Large Commercial Agricultural businesses should be encouraged to work /cluster with small semi- include: Duty Concession Scheme (DCS); Code 121; commercial farmers to share expertise and resources Code 113; and the anticipated Export Development (machineries/exports markets) that are required to Scheme. Development partner assistance directed cultivate additional lands for farming purposes. towards developing the private sector and creating an

1.2.8 Increase the acreage of traditional/tropical produces to enabling environment for them include: EIF capacity meet the national and international demand. building initiatives (Tier 1); Private Sector Support Facility

1.2.9 Set up training and mentoring programme to enable (PSSF); guarantee schemes through Small Business farmers and primary producers to perform value- adding activities Enterprise Centre (SBEC) and the Samoa Agri-Business *Actions are subject to change on an annual basis resulting from Annual Sector Scheme (SABS); as well as access to concessionary Reviews credit through the Development Bank of Samoa (DBS). Additionally, standards (as in Pillar one) play a big role in 5.3.2 | Pillar Two – Increase Processing Activities processing and value-addition, as these enable goods and Value Addition and services to directly penetrate, not only the local Pillar two of the sector ‘Increase Processing Activities and market but also the international market. There is a need value-addition’ aims to enhance the manufacturing sector to ensure acceptable standards are maintained through and boost value-addition of locally available resources. existing International Standards Organisation (ISO) programmes and planned introduction of Hazard Analysis Figure 21: Pillar Two - Increase Processing Activities and Value- addition Outputs and Critical Control Points (HACCP) or ISO 22000 (food safety) programmes for both manufacturers and service P2 - Increase Processing providers. Nonetheless, the set-up for oversight of Activities and Value-addition standards is for the Food Act 2015 under the Ministry of Health (MOH) to cover standards for all food-related products, and MCIL to govern standards for non-food- related products. 2.1 - Increase number of value- added products Value-addition for Services is targeted through numerous mechanisms, relevant to the Sector’s work are the technical and vocation education training (TVET) 2.2 - Improve quality assurance programmes such as the Apprenticeship scheme. Other standards for key processing industries value-addition for services are captured under the work of the Education Sector and the national Education institutions. Furthermore, there is a need to align services to international labour standards to enhance their 2.3 - Establish quality standards for marketability in the international market. Hence, the key services continuous effort to enforce labour standards and occupational safety and health, as well as the ratifying of international labour conventions. This Pillar aims to strengthen the link between the agricultural sector and manufacturing sector for Table 4: Pillar Two - Increase Processing Activities and Value- commodities. A significant portion of Samoa’s formal addition Actions sector is manufacturing and promoting their link to = Output 2.1 – Increase number of value-added products agriculture sets stage for formalising the agriculture 2.1.1 Promote quality locally made products through sector. It is also noted that international commodity prices improved marketing and branding initiatives as well 21 as through the National Export Strategy. Encourage Figure 22: Pillar Three - Enhance Market Access and Visibility for the production and consumption of locally produced Samoan Goods and Services Outputs goods and services.

2.1.2 Enforce readable information on Samoan products in P3 - Enhance Market Access and Visibility regional and international markets (including names, for Samoan Goods and Services date of manufacture and expiry, physical address, packaging material, country of origin and internet based marketing portal and e-competitiveness).

2.1.3 Promote large scale commercial agriculture and rural 3.1 - Reduce costs of doing agro processing to reduce rural unemployment and business underemployment. 2.1.4 Review sector profiles for at least two industries

2.1.5 Linking industry development issues at national level 3.2 - Improve access to various with overall regional or international agreement private sector support schemes Samoa is a party to

2.1.6 Expand the Apprenticeship Scheme with additional trades. Output 2.2 – Improve quality assurance standards for key processing industries 3.3 - Improve trade balance

2.2.1 Coordinate and facilitate food and non-food safety standards.

2.2.2 Enhance the legislative framework to capture and formalise standards for local and imported products, 3.4 - Increase labour mobility to as well as ensuring fair trade initiatives foreign markets

2.2.3 Prioritise selected industries (fisheries, coconut, cocoa etc.) to roll out the ISO and HACCP certification process and consider avenues in which costs of compliance can be reduced In this regard, the sector is continuously working towards:

2.2.4 Enhance Co-operation with Australia and New enhancing the legislative framework to regulate both the Zealand in assisting Samoa to comply with standards domestic and international market; conforming trade including capacity building on conformity assessment, arrangements and our institutional setup with mutual recognition and equivalence of product appreciation afforded to our national interest, customs standards in ANZ markets. and traditions. Putting this into action requires enhancing Output 2.3 – Establish quality standards for key services

2.3.1 Trade Panels and Industry to revise Industry Training of our border operations and port establishments; and on the Job Forms to be in line with National promoting and understanding the demand of markets and Competency Standards. how our supply could meet it.

2.3.2 Process the accreditation of the Apprenticeship Scheme. This Pillar focusses on improving the support services to

2.3.3 Strengthen and empower the work of SQA to address businesses through improved trade facilitation measures at skill shortages in Samoa. the border (e.g. quarantine services, customs services etc.).

2.3.4 Develop and implement guidelines on promotion of There is also a need to accelerate the simplification of green jobs within trade implementing agencies. *Actions are subject to change on an annual basis resulting from Annual Sector government processes to reduce costs of doing business. Reviews Moreover, the impacts of the schemes that have been operational for the last five years need to be evaluated, to ensure they are still relevant to priorities coming through the 5.3.3 | Pillar Three – Enhance Market Access and sector. Programmes to be reviewed include, but not limited Visibility for Samoan Goods and Services to: PSSF, SBEC and the Duty Concession Schemes such Pillar three of the sector is ‘Enhance Market Access and as Code 121 and 131. Visibility for Samoan Goods and Services’, and it aims to GOS also anticipates the improving of the trade balance enhance the effectiveness of market mechanisms and through increased use of relevant trade agreements such as the growth of commercial activities to create a level WTO, PICTA etc. There is also the need for the trade playing field for all in the domestic market. It also aims to agenda to be more focussed on core export markets such boost Samoa’s capacity to engage in, and reap the gains as New Zealand, American Samoa, and Australia. Focus on from trade through enhancing competitiveness, reducing improving trade in services with targeted support to core the trade deficit to sustainable levels through promoting services in financial, telecommunications and agricultural exports and substituting imports. sectors. 22 Moreover, the Sector anticipates the building of Samoa’s schemes by exporters, identify challenges in potential to export services through the Labour Employee utilisation and make recommendations towards Export Programme (LEEP), capitalising on the successes enabling improved utilisation of the schemes.

3.2.8 The private sector is encouraged to expand from the New Zealand Regional Seasonal Employment resources for marketing initiatives to evaluate (RSE) scheme and the Australian Seasonal Workers overseas markets and develop relationships to Programme (SWP). A priority for services is certification secure market opportunities, including active and accreditation in order to further meet the international participation in investment/trade missions and road demand. Additionally, there are multiple service avenues shows. that have yet to be articulated in Samoa, for example, 3.2.9 Initiate and implement Public Private Partnerships (PPP) risk-sharing models in providing access to sports and professional services. capital for MSME. This is by exploring utilisation of (i) Guaranteed lending through regulated banking Table 5: Pillar Three - Enhance Market Access and Visibility for financial firms; (ii) Intermediate Revolving lending Samoan Goods and Services Actions through exempted non-bank financial firms and (iii) Output 3.1 – Reduced cost of doing business Other emerging financial instruments such as

3.1.1 Develop simple business set-up processes and business angel financing and crowd funding. streamline them on electronic platforms.

3.2.10 Assess feasibility of establishing a carbon trading

3.1.2 Develop of a central registration system for scheme/institution businesses in Samoa which would be used by all

3.2.11 Strengthen Government partnership with Private Government agencies (MfR, NPF, ACC) building on Sector organisations through cost-sharing and the success of the online company registration. mutual capacity building.

3.1.3 Review national tariff structure to reduce tariffs on Output 3.3 – Improved trade balance inputs and capital goods for local production process

3.3.1 Exploration of the accession to the iEPA (Interim and create an investment environment for export Economic Partnership Agreement) with EU, to

3.1.4 Implement Samoa’s Trade Facilitation Needs promote investment for development of fisheries in Assessment Samoa. Also push through the comprehensive EPA

3.1.5 Increase interventions aimed at reducing shipping discussions enhance trading for all other goods. costs

3.3.2 Negotiate a formal trade and economic cooperation Output 3.2 – Improved access to various private sector agreement bearing in mind the need to confirm a support schemes clear mandate for American Samoa to negotiate a

3.2.1 Efficient implementation of assistance schemes Trade and Economic Cooperation Agreement administered through the Sector and research into (TECA) with Samoa that would be easy to implement other new incentives in accordance with the need of with simplified rules of origin. The TECA should industries. Develop, review and promote government include a limited number of key products that would assistance schemes geared towards the private be of great interest to both countries. sector. To have a level playing field in terms of

3.3.3 Negotiate with China the possibilities of extending incentives and assistance between foreign and local preferential access of Samoa’s products in investors. consideration of the climate change impact on the

3.2.2 Integrate overseas trade promotions and investment economy and also in supporting trade development schemes (citizenship, tax incentives, customary land of Samoa. access etc.) into targeted packages for investors and

3.3.4 Assist the Agriculture Sector with import substitution development of a financing strategy to assist the efforts and the Energy Sector with work on transition of small businesses for expansion and renewable energy sources which impacts the value sustainability of initial support by Government that of petroleum and like products that are imported into include initiatives through the DBS, SBEC, SACEP Samoa. and SBI. Output 3.4 – Increased labour mobility in foreign markets

3.2.3 Increased support for commercial agriculture project

3.4.1 Provide administrative support for the Labour especially access to government land, trainings for Employment and Export Program (LEEP) and farmers, and providing duty concessions. explore additional overseas seasonal employment

3.2.4 Increase access to Competitive Financing: financial opportunities for Samoa. Explore and develop assistance such as the export financial guarantee as additional bilateral schemes, such as the New the export financial guarantee scheme and revive Zealand Regional Seasonal Employment Scheme the development band to be the principal lender for (RSE) and Australian Seasonal Workers Program the sector. (SWP), to facilitate mobility for both skilled and

3.2.5 To further enhance market access for local unskilled labour in the region and internationally. entrepreneur.

3.4.2 Review implementation of measures and strategies

3.2.6 Promote the Personal Properties Securities Act to enhance the participation of Samoa’s services (PPSA) as a means for lowering costs of accessing industry in international (services) trade including credit. labour mobility

3.2.7 A survey to be conducted in collaboration with SCCI 3.4.3 Include services liberalisation in the formal and SAME to establish the most utilised GSP arrangement under negotiation. 23 *Actions are subject to change on an annual basis resulting from Annual Sector available courses through agencies such as WTO and the Reviews Samoa In-Country Training Programme. Climate change plays a significant role in the sector given its influence on agricultural production and business security and business 5.3.4 | Pillar 4 – Strengthen Sector Coordination, operations as a whole. Therefore, there is a need to assess Planning and Support. relevant initiatives to ensure resilience of both farming and Pillar four of the sector is ‘Strengthening Sector retail businesses in adapting to, or mitigating the risks Coordination, Planning and Support’ and is basically the associated with, climate change. We also need to push the work and operations of the TCM institutional bodies, role of female entrepreneurship to reflect progress in specifically the TCM-CU, and all TCM stakeholders that ensuring sustainable development goals in the sector. are carried out to support the SDS aspirations of ‘Increasing Exports’ and ‘Developing the Private Sector’. Table 6: Pillar Four - Strengthen Sector Coordination, Planning and Support Actions Figure 23: Pillar Four - Strengthen Sector Coordination, Planning and Output 4.1 – Coherent sector planning and policy Support Outputs formulation

4.1.1 Develop and implement a National Industry P4 - Strengthen Sector Coordination, Development Strategy/Industrial Policy to focus on Planning and Support enhancing value addition to products in areas which have comparative advantage and ensure that the necessary investment climate in terms of infrastructure, legislation is strengthened. 4.1 - Coherent Sector planning 4.1.2 Promote the development of micro, small and medium and policy formulation enterprises (MSME) and implement macroeconomic policies and practices that are consistent with Samoa’s objective of increasing exports and enhancing competitiveness. 4.2 - Accurate and timely Sector 4.1.3 Develop and implement measures and strategies to statistics for planning improve the participation of Samoa’s services industry in international services trade

4.1.4 Strengthen the e-commerce regulatory framework & regulations. 4.3 - Stregthen capacity of Sector 4.1.5 Review and develop effective Industrial Relations, implementing agencies FEEP and OSH policies and procedures.

4.1.6 Incorporate Employment issues and target into the macroeconomic framework.

4.1.7 Strengthen Sector M&E Framework, Budgeting 4.4 - Integration of cross-cutting (MTEF) and TCM-CU capacity issues into the Sector 4.1.8 Build on the Joint Policy Action Matrix (JPAM) to capture sources of sustainable financing

4.1.9 Review trade and other relevant commercial laws to As previously indicated, the TCM-CU is mandated to create and support a dynamic trade sector coordinate and monitor the execution of the TCM-SP and 4.1.10 Undertake design and implementation of Special Economic Zones (SEZ) in Samoa focussing on the to serve as Secretariat of its governing bodies. In this following areas: competitive tax and incentives connection, the TCM-CU is responsible developing and regime; zone development and administration; updating the M&E framework, MTEF, and reporting to the environmental sustainability and climate change numerous stakeholders of the TCM-SP. mitigation; and labour market productivity.

4.1.11 Improve the monitoring of local and foreign owned Support is to be continued for the TCM-SC through the shops and issue warnings to those breaching any law TCMCU and development of core elements such as the and/or customs Medium Term Expenditure Framework (MTEF) and 4.1.12 Assess procedures, processes and documentation required for streamlining and improve efficiency inter- Monitoring and Evaluation (M&E) framework. Annual sector agencies reviews are essential to ensure opportunities and challenges 4.1.13 Enhance commitment with the International Labour are addressed and priorities updated. Core agencies must Organisation. provide timely and accurate statistics for monitoring the 4.1.14 Enhance the legislative and regulatory framework for performance of the sector. There is also need to focus on labour standards, employment relations, and provision of core business legislation that will impact on the occupational health and safety sector. Essential to ensure annual training plans are 4.1.15 Implement and monitor commitments made in all developed for all sector training, is to take advantage of trade agreements/ arrangements. Create a 24 development-oriented trade policy in line with relevant to private sector development, Samoa's development goals competitiveness and trade policy. Output 4.2 – Accurate and timely sector statistics for 4.3.10 Strengthened collaboration between MfR, MCIL, planning MPMC and other relevant agencies to address issues

4.2.1 Review, research and update investment with tax collection, business and immigration laws opportunities to be promoted. 4.3.11 Training needs program developed in line with

4.2.2 Implementation of the Labour Market Information Customs management system and collaborate with key 4.3.12 Improved border operations and Customs Control stakeholders for better operation. Area (CCA)

4.2.3 Create a Computerized Central Statistics Database Output 4.4 – Integration of cross-cutting issues into the for the Sector and its Implementing Agencies as a part sector of the management and information unit and use the 4.4.1 Develop a robust disaster recovery plan for all data for research and diagnostic studies. Enhance an electronic systems to ensure business continuity. electronic database and filing system for sector 4.4.2 Sensitise the sector and its implementing agencies implementing agencies. Implement the “One MCIL” about climate change and adaptation and resilience initiative and provide resources measures

4.2.4 Statistics and performance monitoring indicators to be 4.4.3 Integrate international goals and values into the revisited (including disaggregation by age and sector in line with Samoa's national interest gender) to measure Inclusive Growth as part of the 4.4.4 Develop integrated climate resilient investments in Community Sector Plan 2016-2021 by MWCSD. collaboration with key sectors like energy and

4.2.5 To develop measurable and substantive indicators to environment. monitor results and performance from Trade 4.4.5 Incorporate Human Capital development into national Agreements (e.g. employment statistics from firms objectives. involved in export and tax revenue resulting from 4.4.6 Ensure equal access for persons with specific needs preferences accorded and MSMEs exporting to (PWSN) in both paid and self-employment markets). opportunities. Output 4.3 – Strengthen capacity of sector implementing 4.4.7 Promote gender equality in the work places and agencies general employment opportunities.

4.3.1 Develop monitoring and evaluation framework with *Actions are subject to change on an annual basis resulting from Annual Sector Sector Implementing Agencies to guide and monitor Reviews their role in terms of compliance with their relevant mandate. Restructure Sector implementing agencies to reflect the extent of the sector mandate.

4.3.2 More capacity building on Technical Barriers to Trade/Competition/Metrology and Codex.

4.3.3 Strengthen tripartite dialogue with key stakeholders on all labour/OSH related matters.

4.3.4 Research and develop an electronic customers- centered system for FEEPS.

4.3.5 Develop the capacities of private sector institutions to effectively engage with government on trade policy formulation through training in technical trade issues, enhanced dissemination of relevant information and trade negotiations, etc.

4.3.6 Develop an electronic monitoring system for business environment and cost structure

4.3.7 Enhance the capacity of the Sector Implementing Agencies to meet the implementation requirements of the Sector policies

4.3.8 Enhance the country capacity to Implement its WTO obligations and continue to work with lead agencies in implementing the post Accession Matrix and effectively engage in trade negotiations through close collaboration with International institutional capacity strengthening institutions.

4.3.9 Design and implement an immediate educational enhancing program for the private sector in rapid participation in trade in services with industries being explored or integrated under modes (1) – (4) of PICTA. Work with training institutions to provide business/ entrepreneurial skills and other skills 25 5.4 | Sector Governance foothold of the sector in the economy-wide setting and from this understanding institute the need for the sector The need for a sustainably effective sector-wide and the relevance of the SWAP. In this regard, the coordination framework is pertinent to accommodate the following Figure captures the Sector Governance requirements of taking a SWAP. There should also be a Framework: Figure 24: Sector Governance Framework Parliament ! APICAL LEVEL Cabinet ! CDC Other Stakeholders' consultatton Mechanisms GOVERNANCE LEVEL TCM Steering Trade, Commerce & Industry (TCI) Board Committee National Working Committee on Trade Arrangements National Trade Facilitation Committee ! l :--~i~l~;;~;~;~s-t;i~~-: : Pi llar 2-Proc essing L r -;ill~~;= ~;r-k~; -- : : Supply & Pro ductivity:~ & Value-add ition ~ - - - ---------- ~ ·~ - - - - - - - - -· :7:, __________________ Acces s : _ :r:::o; ERATIONAL LEV"'a] '--------------v,---__________,/_ i Pillar 4-Sector Support & 1 : Planning Fram ework : ~ -- --- - -- --- -- - - -- -- -- -• The TCM-SP 2017/18 – 2020/21 necessitates that TCM-SC is at the CEO level and the TCM-TF at the government, private sector and development partners ACEO level. However, it was later discovered that the adopt a programme-based approach, rather than project- same representation was present in both seating and based approach, to delivering support to the sector. This therefore making the Task Forces redundant. approach is also more comparable to the SWAP. Therefore, the TCM-SP rightfully underscores the Moreover, the TCM-CU is mandated to coordinate and importance of inclusiveness in implementation and monitor the execution of the TCM-SP and to serve as coordination. Hence, in ensuring an orderly Secretariat of its governing bodies. The TCM-CU for the implementation, it features specific institutional sector established under MCIL is capacitated with a arrangements, like the TCM Steering Committee (TCM- Sector Coordinator, a Principal Finance and Procurement SC) and the Coordination Unit (TCM-CU), which were Officer, Principal M&E Officer, Senior Finance Officers established in 2012. and two Senior Sector Officers. The TCM-SC, made up of 25 government agencies and five private sector organisations, strategically oversees the implementation of the TCM-SP. The TCM-SC is also adjusted to perform the functions of the Integrated Framework National Steering Committee. Furthermore, there was previously the TCM Task Force (TCM-TF) established to follow through TCM-SC strategic decisions and to directly supervise the work of the TCM-CU. The understanding for the TCM-SC and TCM-TF was that the 26 5.5 | Institutional Arrangements maintenance of a well-managed registry to ensure the integrity of Births, Deaths and The TCM Sector has 10 Implementing Agencies (IAs) Marriages”. In this connection, they play a key carrying out sector initiatives: six Government role under the TSSP which is to undertake the national business activity survey to inform Ministries/Agencies; 2 public bodies; and 2 private sector the TCM sector monitoring and evaluation organisations. These organisations and their respective mechanisms under Component 2. roles are presented in the Table below. Central Bank CBS undertakes the formulation and of Samoa implementation of monetary policy and Table 7: TCM Sector Implementing Agencies (CBS) related measures, which include open market IAs ROLES AND RESPONSIBILITIES operations in Central Bank Securities to Government Ministries/Agencies influence the level of interest rates and the Ministry of MCIL has a broad mandate with availability of credit, as well as collating and Commerce, responsibilities ranging from industry analysing data for the balance of payments. Industry & development and investment promotion, Its key role under the TSSP was to assist with Labour (MCIL) registration of companies and intellectual the establishment of baseline data for trade in properties, fair trading, industrial relations and services under Component 3. employment conditions, and labour market Public Bodies information collection and dissemination. The Samoa Trust STEC was restructured as a privatised Ministry also houses the TCM Sector Estates corporation in 1990 to divest interests in Coordination Unit. Moreover, MCIL is the Corporation certain lands; to make provision for the bridge between government and the private (STEC) reduction of debts due by it to the sector, and they are the leading agency for government. STEC is mandated to manage promoting private sector development and reparation estates formerly under New creating an enabling operating environment Zealand administration. It is a self-sufficient for businesses. organisation which receives limited funding Ministry of The core mandate of the Trade Division of from government. Its key role under the TSSP Foreign Affairs MFAT is trade policy development, trade is to assist with improving production and and Trade negotiations, and export facilitation and processing capacities under Component 4. (MFAT) promotion. At the operational level MFAT is Scientific SROS was set up in 2006 to provide scientific responsible for formulating, negotiating and Research and technical research for the government implementing the national trade policy. Organisation and to develop new technologies to benefit Furthermore, MFAT is the main channel of of Samoa Samoa’s local industry. SROS’s communication with other governments and (SROS) establishment is based on the realisation that administers foreign affairs and trade relations adding value to primary produce overcomes with other nations as well as policy advice some of the export trade challenges and and representation activities. contributes economic benefits. Its key role Ministry for MfR plays a key role in facilitating trade given under TSSP is to assist with improving Revenue their capacity to issue business licenses, production and processing capacities under (MfR) implement the tariff structure, assist in tax Component 2 and 4. lodgements, and participate in overseeing Private Sector Organisations selective tax incentives provided to enable Samoa SCCI, or the Chamber, is an incorporated the business environment. The Customs Chamber of association of businesses, private sector section of MfR is also the focal point for Commerce organisations and business people border control as well as facilitating the and Industries representing all areas of Samoa’s private movement of goods. (SCCI) sector. The Chamber’s purpose is “to act as Ministry of MAF has an enormous and challenging task Samoa’s National Private Sector Organisation Agriculture given the importance of revitalising the that will promote the interests, well-being and and Fisheries agriculture sector. The Agriculture Sector has growth of Samoa’s private sector at the (MAF) also been established with policies and national, regional and international levels to strategies targeting supply side, institutional improve the economic and social well-being arrangements, quarantine and market of the people of Samoa.” Its key role under access, as well as nominating and promoting the TSSP is to assist with strengthening trade more climate resilient crops. MAF and the facilitation services under Component 3. Agriculture Sector are also very driven to Women in WIBDI was established in 1991 as the explore opportunities for import substitution. Business Women in Business Foundation, initially to Samoa The goal of SBS is to “provide high quality Development promote and advance the economic and Bureau of statistics concerning factors affecting the Inc. (WIBDI) business status of urban Samoan woman. Its Statistics Samoan economy, government and main focus is ensuring vulnerable families in (SBS) population”. Its long term objectives are to Samoa are able to contribute to their own ensure the “integrity and timely provision of development, the development of their official statistical information as well as the community and country through income 27 generation, job creation and participation in  Public Holidays Act 2008 the village economy. Its key role under TSSP  Receiverships Act 2006 is to assist with improving production and  Securities Act 2006 processing capacities under Component 4.  Tax Administration Act 2012 Small  Trade Commerce and Industry Act 1990 Business  Transitional Provision Act 2006 Enterprise International  Codex Alimentarius Commission Centre Laws - Food Standards (SBEC) - Food Labelling Samoa - Toy Safety Standards Association  Consumer International for - World Consumer Rights Day Manufacturers - Consumer Rights and Consumer and Exporters Protection (SAME) - Consumer Information  International Labour Organisation ILO Conventions - C029 Forced Labour Convention 5.6 | Policy and Regulatory Framework 1930 The TCM Sector has a wide Policy and Regulatory - C087 Freedom of Association and protection of rights to organize Framework which covers the wide mandate of business convention 1948 laws, international signatories, and other Regulatory roles - CO98 – right to organise and and obligations: collective bargaining convention 1949 Table 8: TCM Legislative and Policy Framework - C100 – equal remuneration Policy Type Description convention 1951 Legislation  Apprenticeship Act 2014 - C105 – abolition of Forced labour  Apprenticeship Regulations 2014 convention 1957  Charitable Trusts Act 1965 - C111 – discrimination (employment  Citizenship by Investment Act 2015 and occupation) convention 1958  Companies Act 2001 - C138 – minimum age convention  Companies Regulations 2008 1973  Consumer Information Act 1989 - C182 – worst forms of child labour  Cooperatives Societies Ordinance 1952 convention 1999  Cooperatives Societies Regulations 1954 - MLC – maritime labour convention  Copyright Act 1998 2006  Credit Union Ordinance 1960 - Privileges and immunities  Customs Act 2014 convention 1948  Customs Tariff Act 1975  United Nations Industrial Development  Daylight Saving Act 2009 Organization  Fair Trading (Approved Egg Standards) - Industry Developments Regulations 2010  World Intellectual Property Organization  Fair Trading Act 1998 - 1967 Convention Establishing  Foreign Investment Act 2000 World Intellectual Property  Foreign Investment Amendment Act 2015 Organisation  Foreign Investment Regulations 2011 - 1954 Convention for the Protection  Immigration Act 2004, amendments and of Cultural Property in the Event of regulations Armed Conflict  Income Tax Act 2012 - Hague Convention Abolishing the  Incorporated Societies Ordinance 1952 Requirement of Legislation for  Incorporated Societies Regulations 1973 Foreign Public Documents  Intellectual Property Act 2011 - 1970 Convention on the Means of  International Date Line 2011 Prohibiting and Preventing the Illicit  Labour and Employment Regulations 2015 Import, Export and Transfer of  Labour and Employment Relations Act Ownership of Cultural Property 2013 - 1971 BERNE Convention for the  Metrology Act 2015 Protection of Literary and Artistic  Occupational Safety and Health Act 2002 Works  Occupational Safety and Health - Paris Convention for the Protection Regulations 2014 of Industrial Property  Personal Property Securities Act 2013 28  World Agencies for Investment Promotion  National Heritage Committee – (MESC) Agencies  National Revenue Board (MOF) - Investment Promotion Agencies  National Tobacco Control Committee  Pacific African Caribbean Pacific – (MOH) European Union  National University of Samoa (NUS) - Economic Partnership Agreement  National Working Committee on Trade – ongoing Agreements (MFAT)  PACER PLUS and PICTA  Ozone committee (MNRE) - Trade in Goods  Pesticides and Pollutant Committee - Trade in Services (MNRE) - Investment Chapter  Petroleum Taskforce Committee (MOF) - Temporary Movement of Natural  Samoa Market Access Working Group – Persons Pacific Horticultural & Agricultural Market  World Trade Organization Access (PHAMA) (MAF) Other  Strategy for the Development of Samoa  Post-Secondary Education training (PSET) Regulatory 2016/17-2019/20 – Priority Area 1: Key Committee, Roles Outcome 3: Export Products Increased  SACEP – Agriculture (MAF) and Key Outcome 5: Participation of  Samoa Bureau of Statistics (SBS) Steering Private Sector in Development Committee Enhanced  Samoa National Youth Forum (MWCSD)  Trade Commerce and Manufacturing  Samoa Qualification Authority (SQA)Board Sector Plan 2012-2016,  Small Business Enterprises Centre (SBEC)  Ministerial and Departmental  Tourism Cyclone Recovery Programme Arrangements Act 2003, (STA)  Public Finance Management Act 2001,  Trade Advisory panel (SQA) amendments, regulations, manuals and  Traditional Knowledge committee (SQA) instructions,  TVET Implementation Committee (MESC)  Public Bodies (Performance and Accountability) Act 2001 and,  Public Service Act 2004, amendments, regulations and instructions Legislated  Apprenticeship Council Committees  Trade Commerce and Industry Board  Samoa National Codex Committee  Prices Control Board,  Samoa National Tripartite Forum  Trade, Commerce and Manufacturing Sector Steering Committee Other  Accident Compensation Corporation (ACC) Affiliations Board  Agriculture Sector Plan – Steering Committee & Working Groups (MAF)  Disaster Advisory Committee – (MNRE DMO)  Convention on Elimination of Discrimination Against Women (CEDAW- MWCSD),  Climate Change committee (MNRE)  Commercial Fisheries Management Advisory Committee (CF- MAC - MAF)  Environment Sector Steering Committee (MNRE)  Fire Emergency Service Committee (FESA)  Forestry Board (MAF)  Investment Committee (MOF)  Livestock – Management Advisory Committee (L-MAC – MAF)  National Disaster Management Committee (MNRE)  National Energy Committee (MOF) 29 6 | THE OPERATIONS 6.1 | Monitoring and Evaluation Framework 6.1.1 | Samoa Monitoring Evaluation Reporting Framework SDS Priority SDS Key Strategic Outcome Indicator Baseline Indicator Implementing Implementing Area Outcome Sector Agency Economic Macroeconomic Real GDP growth will average 3.0- GDP growth rate Real GDP growth Finance Sector MoF, SNPF, Resilience 4.0% average; Trade Sector SBS, MCIL Increased and Sustained. Percentage of employment to GDP Agriculture and Agriculture/Fisheries production Investment in Growth in agriculture Agriculture MAF, DBS, Fisheries systems investment by private agriculture/fisheries, and fisheries sector Sector/ Trade STEC, SROS, Productivity sector increased: New employment and (real contribution to Sector MNRE, MCIL, Increased agribusinesses established in taro, inclusiveness. GDP %). SBS fisheries and aquaculture, coconut based products, livestock and horticulture. Investment in agriculture and Domestic market production and Volume, quality and prices fisheries, employment Agriculture MAF, DBS, food nutrition improved: 20% of local food products. and vulnerable group Sector/ Health STEC, SROS, increase in volume of local food inclusiveness. Sector/ Trade MNRE, MCIL, production (2014); Area of land Sector SBS available/utilised, sustainability of practices, Value/volume, land number businesses. area of agriculture Agriculture/fisheries value adding Crop/livestock improved and fisheries based Agriculture MAF, DBS, and exports increased:- Ratio of products. production (Export/ Sector/ Trade STEC, SROS, Agricultural exports to food imports domestic). Sector MNRE, MCIL, more than doubled. Ratio Agricultural exports to SBS imports; Exports Commerce and business investment % change in Manufacturing Investment levels Trade Sector/ MAF, DBS, Products environment for exports improved:- GDP (agribusiness and (tourism, Agriculture MCIL, MFAT, Increased. Streamlined foreign investment tourism, domestic and agribusiness, Sector STA, SBS system;- Number of foreign international). agriculture). investment certificates issued increased. 30 Manufacturing Business productivity increased: – Export volume, value, type production Trade Sector/ MAF, MoF, number Samoa Agriculture (agriculture, fisheries and (agribusiness and Tourism Sector MCIL, MFAT, Competitive Enhancement Program tourism). fisheries). STA, SBS projects and Samoa Agribusiness Project projects supported Climate and disaster increased; resilience planning status. Labour mobility increased: – number RSE categories. Trade Sector/ MAF, MoF, of work categories expanded in the International and Tourism Sector/ MCIL, MFAT, regional employment scheme domestic trade leve. Agriculture STA, SBS through negotiation with partner Sector countries. Participation of Government services supporting % change in Commerce Industrial production Public Admin PSC, MoF, Private Sector private sector investment improved GDP. index. Sector/ Trade MCIL, SBS in Development to encourage employment creation: Sector Enhanced. - information and negotiation points Employment creation in with government established with private sector. 100% awareness of them by private sector. Information points established and use. Awareness levels of government contact and information sources. Investment environment for Number foreign investment Public and private Public Admin PSC, MoF, MPE, business improved: - increased certificates. sector employment Sector/ Trade MCIL, MFAT, number of foreign investment figures. Sector SBS certificates issued. Infrastructure Improved and Application of ICT made more E-Governance and E-Waste Internet usage. Communication MCIT, OOTR, Affordable sustainable: - E-governance and E implementation status. Sector/ Trade SBS, MPE, Country Wide waste plans implemented. Sector/ Public MWTI, MNRE. ICT Admin Sector/ Connectivity Environment Sector. 31 6.1.2 | TCM-SP 2017/18 – 2020/21 M&E Framework SDS Outcomes Overall Objective Indicators Baseline Target Source/ Assumptions & Risks (End of SP Outcome) (End of SP) Frequency Outcome 1 – Sustainable trade, commerce GDP growth rate and value Growth rate – Growth rate – CBS Bulletin/ The GDP growth rate over Macroeconomic and manufacturing for 1.7% 2.17% annual the assessed five-year Resilience Increased enhanced growth and (FY2011/12 – (FY2016/17 – period is 1.7% compared and Sustained development FY2015/16) FY2020/21) to the targeted growth of 3- 5% per annum envisaged Value – 1.7 Value – 2.11 in the SDS 2012-2016. At billion (FY billion (FY this rate we can expect a 2011/12) 2020/21) GDP growth rate of 3.1% for this 2017/18-2020/21 planning period. However, in anticipation of another major natural disaster, the Samoan economy is optimistically envisaged to grow 2.17% (3.1% - (0.30 × 3.1%) over the period. The growth will mainly be driven by the commerce sector, with support from the revamped and revitalised agriculture, fisheries and manufacturing sectors. SDS Outcomes TCM-SP Purpose Indicators Baseline Target Source/ Assumptions & Risks (Pillars/Outcomes) (End of SP) Frequency Outcome 2 – Agriculture 1 - Improve Industrial Supply Percentage and Value of, MN CBS Bulletin/ Value of Agriculture and and Fisheries and Productivity Commerce, Manufacturing annual Fisheries in GDP Productivity Increased and Agriculture and increases Fisheries in GDP CBS Bulletin/ Percentage of Agriculture annual and Fisheries in GDP increases Employment Rate SR SBS/ 5 years Outcome 5 – 2 - Increase Processing Agro-processing MN CBS Bulletin/ Participation of Private Activities and Value-addition contribution to industrial annual Sector in Development production Enhanced 32 Outcome 3 – Export 3 - Enhance Market Access Trade Balance HR CBS Bulletin/ Products Increased and Visibility for Samoan annual Goods and Services Outcome 3 – Export 4 - Strengthen Sector Mid-Term Review update TCM, MCIL, Products Increased Coordination, Planning and . completed ~ SBS, CBS - Support Outcome 5 – TCM SP 2017/18-2020/21 Participation of Private completed Sector in Development Enhanced MTEF 2017/18-2020/21 maintained M&E Framework 2012- 2016 IcompletedI Pillar Programme Results Indicators Baseline Target Source/ Assumptions & Risks (Outcomes) (Outputs) (by end 2016) Frequency Pillar 1 – Improve 1.1 – Improved productivity of MCIL industrial supply and key industries productivity 1.2 – Consistent quality and Value of Agriculture and MN MOF Budget quantity of primary sector Fisheries in GDP Estimates for supply MAF FY Pillar 2 – Increase 2.1 – Increase number of Value of Goods Export 2012 – Exports 2016 – Exports CBS Quarterly processing activities and value-added products 62.8 million tala 96.5 million tala Bulletin value-addition External Trade and Payments B1 2.2 – Improve quality Number of ISO and SR assurance standards for key HACCP certified processing industries companies 2.3 – Establish quality Number of Apprenticeship SR MCIL AELM standards for key services Scheme Graduates Database/ annual Pillar 3 – Enhanced 3.1 – Reduced cost of doing Cost of doing Business HR WB Doing market access and business Business visibility for Samoan report/annually goods and services 3.2 – Improve access to Number of Private Sector HR MCIL various private sector support Support schemes schemes beneficiaries 33 3.3 – Improve trade balance Balance of Trade in Goods HR CBS Bulletin/ annual Balance of Trade in HR CBS Bulletin/ Services annual 3.4 – Increase labour mobility Number of people SR MCIL, MFAT in foreign markets deployed to foreign markets Pillar 4 – Strengthen 4.1 – Coherent sector  Mid-Term MCIL sector coordination, planning and policy Review 12/16 planning and support formulation  TCM SP 2017/18- 2020/21  MTEF 2012- 2016  M&E Framework 2012-2016 4.2 – Accurate and timely Business Activity Survey NPF, MCIL, sector statistics for planning completed CBS, MfR and Integrated Business Data SBS 4.3 – Strengthen capacity of Number of trainings and sector implementing agencies awareness conducted 4.4 – Integration of cross- MNRE, TCM, cutting issues into the sector MCIL 34 6.2 | Medium Term Expenditure/Budget Framework (MTEF) 6.2.1 | Overview 6.2.1.1 | Purpose and objectives of estimates The Medium Term Expenditure Framework (MTEF) is a tool for linking policy, planning and budgeting over the medium-term at the Government-wide level. Under the Public Finance Management Reform Plan 2008-2013, formulation of a sector MTEF is required as the means of linking sector plans to the budget process ensuring that the actual allocation of public resources aligns with sectoral and national development priorities. The MTEF for the Trade, Commerce & Manufacturing Sector Plan 2017/18-2020/21 (TCMSP) has brought together financial and expenditure planning data and attempted to estimate total planned expenditures from all sources of finance available, primarily the TCMSP, annual budget estimates, corporate plans and feedback key stakeholders. These inputs have been used to generate the first estimates of expenditure over the period Financial Year 2017/18 – 2020/21. Given these are based on forward estimates, the quality of the data is considered variable. As the three-year rolling MTEF is implemented and estimates are updated on an annual basis through the national planning and budgeting processes, these estimates will become much more robust and accurate. 6.2.1.2 | Methodology for preparation of estimates The MTEF is a framework for allocating resources to support the implementation of agreed sector priorities within the Government annual budget process. This framework is summarised in Figure 1 below: Figure 25: Medium Term Expenditure Framework Overview Cost of •available resources PolicyProgramme •Annual budget and both Government forward estimates and development •based on objectives, (budget plus 2 years) partners (usually 3 policies and targets years) for each sector Macroeconomic Matching resources Framework with priorities The methodology for the preparation of the MTEF estimates included an analysis of key trends in the sector based on available national statistics and relevant reports. The costing method used is consistent with the Government budget approach and involved a two-step process: i. Review of available information  Cost analysis of government expenditure for delivering existing policy initiatives in the sector. Consolidating and presenting the historical cost analysis from FY2013/14 to FY2016/17 under the refined MTEF conceptual framework. ii. Forecasting  Reconfirming policy performance indicators and targets for the period FY2017/18 to FY 2020/21.  Identifying and forecasting both recurrent and development estimates and resources available to implement new policy and programmes for the period FY2017/18 to FY2020/21. 35 6.2.1.2 | Scope of MTEF The initial TCM-SP 2017/18-2020/21 Action Matrix has a total of 93 actions, filtered through 13 Outputs and 4 Overarching Outcomes/Pillars/Goals. The baseline cost for these priorities was estimated at around ST$95.2 / US$ 40.4 million over this TCM-SP period. The following core implementing agencies were identified to be directly doing activities in the initial Action Matrix: iv. Three government ministries – Ministry of Commerce, Industry and Labour (MCIL), Ministry of Foreign Affairs and Trade (MFAT), and Ministry for Revenue; v. One state-owned enterprise – Scientific Research Organisation of Samoa (SROS) vi. Two private sector organisations – Samoa Chamber of Commerce and Industry (SCCI) and Samoa Association of Manufacturers and Exporters (SAME). Moreover, the majority of actions are shared with other Sectors, with those actions more related to those other Sectors. For example, a bulk of the TCM Sector work are directly related to the Agriculture Sector, particularly those in Pillar 1 – Improve Industrial Supply and Productivity. Therefore, the following agencies are also included in the Sector MTEF: iv. Two government ministries – Ministry of Agriculture and Fisheries (MAF) and Ministry of Health (MOH); v. One state-owned enterprise – Samoa Trust Estates Corporation (STEC); vi. One private sector organisations – Women in Business Development Inc. (WIBDI) The following MTEF conceptual framework highlights the linkages between the sector priority objectives (SPOs) and public spending in the sector. Table 9: Refined Sector MTEF Conceptual Framework Refined Sector Pillars Sector Outputs Ministry Budget Output & Expenditure Type Pillar 1: Improve Industry 1.1 - Improved productivity A. Recurrent Supply and Productivity of key industries MAF Output 4: Crops, Research, Commercial Development &Advisory Services 1.2 - Consistent quality and MAF Output 5: Animal Production, Health and Research quantity of primary sector Services supply MAF Output 6: Fisheries Management, Planning and Research Services MCIL Output 5: Administration of Apprenticeship and Employment Services SROS Output 3: Plant & Food Research and Development B. Development Expenditure Samoa Agricultural Competitiveness Enhancement Programme(SACEP) Pacific Horticultural and Agricultural Market Access(PHAMA) Enhanced Integrated Framework (EIF) Tier 2: Trade Sector Support Programme (TSSP) Component 4 Pillar 2: Increase 2.1 - Increase number of A. Recurrent Processing Activities and value-added products MCIL Output 4: Enforcement of Fair Trading and Codex Value-addition Development 2.2 - Improve quality MCIL Output 6: Enforcement of Labour Standards assurance standards for key MCIL Output 7: Enforcement of Occupational, Safety and processing industries Health Standards SROS Output 4: Industrial Product Development Services 2.3 - Establish quality SROS Output 5: Commercial Technical Services standards for key services B. Development Expenditure EIF Tier 2: TSSP Component 4 Pillar 3: Enhance Market 3.1 - Reduce costs of doing A. Recurrent Access and Visibility for business MCIL Output 3: Management of Investment Promotion & Samoan Goods and Industry Development Services 3.2 - Improve access to MCIL Output 9: Labour Employment Export Programme various private sector MFAT Output 5: Trade Development and Promotions support schemes MfR Output 7: Trade Facilitation 36 Refined Sector Pillars Sector Outputs Ministry Budget Output & Expenditure Type MAF Output 3: Agricultural Quarantine and Regulation Services 3.3 - Improved trade balance B. Development Expenditure EIF Tier 2: TSSP Component 2 3.4 - Increase labour mobility Private Sector Support Facility (PSSF) to foreign markets Asian Development Bank (ADB) Private Sector Development Pillar 4: Strengthen Sector 4.1 - Coherent Sector A. Recurrent Coordination, Planning and planning and policy MCIL Output 1: Policy Advice to the Minister Support formulation MCIL Output 2: Ministerial Support MCIL Output 6: Enforcement of Labour Standards 4.2 - Accurate and timely MCIL Output 7: Enforcement of Occupational, Safety and Sector statistics for planning Health Standards MCIL Output 8: Management of the Registries of Companies, 4.3 - Strengthen capacity of Intellectual Properties Sector implementing SBS Output 2: Compilation of Economic Statistics agencies SBS Output 3: Compilation of Finance Statistics B. Development Expenditure 4.4 - Integration of cross- EIF Tier 1 cutting issues into the Sector EIF Tier 2: TSSP Components 1 & 3, Contingency MCIL, through the TCMCU and in collaboration with the Ministry of Finance, will be responsible for accounting for and updating the sector MTEF. These arrangements will follow government policies set out in the Treasury Instructions 2013, Sector Planning Guidelines 2015 and the MTEF Training & Skills Assessment Manual 2014. 6.2.2 | Historical Trends in Sector Expenditure 6.2.2.1 | Sector Planning Overview Key planning and policy initiatives for trade development over the next four years are articulated in the Strategy for the Development of Samoa (SDS) 2016/17-2019/20. National targets for the sector are summarised in Table 3. Table 10: Summary of Strategy for the Development of Samoa 2012-2016 KEY OUTCOME & STRATEGIES INDICATORS Outcome 3: Re-vitalised Exports 1 Percentage change in Manufacturing portion of GDP (agribusiness and tourism, domestic and Strategies international) 1 Commerce and business investment 2 Export volume, value, type (agriculture, fisheries environment for exports improved: streamlined and tourism) foreign investment system; number of foreign 3 RSE categories. investment certificates issues increased; 2 Business productivity increased: Number of Samoa Agriculture Competitive Enhancement (SACEP) projects and Samoa Agri-business projects supported increased; and 3 Labour mobility increased: number of work categories expanded in the regional employment scheme through negotiation with partner countries. Outcome 5: Enabling environment for business 1 Percentage change of Commerce Sector development contribution to GDP; 2 Employment creation in private sector; Strategies 3 Information points established and used; and 1 Government services supporting private sector 4 Awareness levels of government contact and investment improved to encourage employment information sources (Public Administration creation: information and negotiation points with Sector); 37 government established with 100% awareness 5 Number of foreign investment certificates; of them by private sector; 6 National Performance Management Framework 2 Investment environment for business improved: status and impact (Public Administration Sector); increased number of foreign investment 7 National Human Resource Development Plan certificates issued; and status and impact (Public Administration Sector) 3 Public sector performance management capacity strengthened: Implementation of the National Performance Management Framework and National Human Resource Development Plan. 6.2.2.2 | Sector Situational Analysis The Situation section of this TCM-SP 2017/18-2020/21 details trade statistics defining trends in the sector. That section of the TCM-SP provides an overview of the TCM Sector Performance since Financial Year (FY) 2011/12 or Calendar Year (CY) 2012. Based on data collected through the national agencies including Central Bank of Samoa (CBS) and Samoa Bureau of Statistics (SBS) trends identified were categorised into three areas (i) SDS Key Outcome One – Macroeconomic Resilience Increases and Sustained; (ii) SDS Key Outcome 3 – Export Products Increased; and (iii) SDS Key Outcome 3 – Participation of Private Sector in Development Enhanced. To ensure consistency, the analysis will mostly use data for the period FY2011/12-2015/16 and CY2012-2016, unless it is stated otherwise. 6.2.2.3 | Sector Expenditure Trends by Pillar Utilising the refined MTEF conceptual framework presented in Chapter 1, spending in the sector over the period FY 2013/14 to FY 2016/17 is summarised under the following pillars: Pillar 1: Improve Industry Supply and Productivity Pillar 2: Increase Processing and Value-adding Pillar 3: Enhance Market Access and Visibility for Samoan Goods and Services Pillar 4 Strengthen Sector Coordination, Planning and Support The total expenditure in the sector during the review period was $83.8 million, with recurrent expenditure amounting to $74.2 million and development funded expenditure totalling $9.6 million. The total share of expenditure per pillar indicates that 41.8% of total resources were spent on improving industry supply and productivity under (Pillar 1), 15.8% on strengthening processing and value adding under (Pillar 2), 23.4% on enhancing market access and visibility for products (Pillar 3), and 19% on strengthening sector coordination and support (Pillar 4). Figure 26: Total Expenditure by Pillar (% Share) 2013/14 – 2016/17 19.0% ■ 1 - Improve Industry Supply & Productivity ($35.1 million) 41.8% ■ 2 - Increase Processing & Value Adding ($12.8 million) ■ 3 - Enhance Market Access and Visibility for 23.4% Samoan Goods and Services ($17.5 million) ■ 4 - Strengthen Sector Coordination, Planning and Support ($15.8 million) 15.8% 38 The trend line for the overall Sector budget shows a 4% growth in the assessed period. This is mainly due to the contribution of development partners via projects. The re-current budget shows a significantly slow decline, but this factor will be re- visited upon completion of future projections in the next chapter. Figure 27: Total Expenditure Trends, 2013/14-2016/17 $25,000,000.00 y = 2E+07e0.0417x R² = 0.2768 $20,000,000.00 $15,000,000.00 $10,000,000.00 $5,000,000.00 $- 2013/14 2014/15 2015/16 2016/17 Grand Total --0- Total Recurrent --0- Total Development Expon. (Grand Total) 6.2.2.3.1 | Pillar 1 – Improve Industry Supply and Productivity Programmes summarised below have been funded mainly through the recurrent budgets of Ministry of Agriculture (MAF), Scientific Research Organisation of Samoa (SROS) and Ministry of Commerce, Industry and Labour (MCIL). There are also development partner projects that were rolled out later on in the assessed period. Figure 28: Pillar 1 Expenditure, 2013/14 – 2016/17 25.1% 1.5% 20.1% 6.9% 0.2% 1.7% 1.5% 44.7% ■ MAF 4 - Crops, Research, Commercial Development & Advisory Services ($15.67 mil) ■ MAF 5 - Animal Production, Health & Research Services ($7.06 mil) ■ MAF 6 - Fisheries Management, Planning & Research Services ($8.8 mil) ■ MCIL Transactions on behalf of State - Apprenticeship Training Provider (NUS) ($0.5 mil) ■ SROS 5 - Food Technology Division ($2.4 mil) ■ Tier 2: Trade Sector Support Programme - Activity 4.1.1 ($0.5 mil) ■ UNDP SDGF ($0.06 mil) 39 Figure 29: Pillar 1 Trends, 2013/14-2016/17 $10,000,000.00 $9,000,000.00 - ~ - - ,... -""- -u '!l!' - .... $8,000,000.00 $7,000,000.00 ~ - rv I $6,000,000.00 ,... v- .... -- -0 $5,000,000.00 $4,000,000.00 ....- -- r-u 0 $3,000,000.00 $2,000,000.00 $1,000,000.00 $- 2013/14 2014/15 2015/16 2016/17 ► + c::::::::J TOTAL $8,301,970.00 $8,782,501.00 $9,054,512.00 $8,914,634.00 ~ UNDP SDGF ($0.06 mil) $- $- $- $58,464.00 ~ Tier 2: Trade Sector Support $- $- $264,000.00 $264,000.00 Programme - Activity 4.1.1 ($0.5 mil) SROS 5 - Food Technology Division ($2.4 $638,407.00 $599,156.00 $598,170.00 $596,601.00 mil) ► + MCIL Transactions on behalf of State - Apprenticeship Training Provider (NUS) $125,300.00 $125,300.00 $125,300.00 $151,670.00 ($0.5 mil) ► + MAF 6 - Fisheries Management, $2,104,222.00 $2,213,596.00 $2,247,041.00 $2,217,280.00 Planning & Research Services ($8.8 mil) ► + MAF 5 - Animal Production, Health & $1,649,545.00 $1,791,589.00 $1,813,688.00 $1,803,676.00 Research Services ($7.06 mil) ► + MAF 4 - Crops, Research, Commercial Development & Advisory Services $3,784,496.00 $4,052,860.00 $4,006,313.00 $3,822,943.00 ($15.67 mil) The total estimated expenditure for these programmes under Pillar 1 between 2013/14 to 2016/17 amounted to $35.1 million due to the significant investment of the Government into the Ministry of Agriculture/Agriculture Sector. These programmes including MAF outputs four (Crops Research Commercial Development and Advisory Services), five (Animal Production Health & Research Services) and six (Fisheries Management Planning & Research Services) and SROS Output three have received consistent funding during this period. The development fund expenditure for this Pillar started in the latter half of the period with the EIF Tier 2 Trade Sector Support Programme (TSSP) rolling out. WIBDI also managed to secure funding for farm training in this period from the United Nations Sustainable Development Goals (UN-SDG) funds, through the UNDP. 40 6.2.2.3.2 | Pillar 2 – Increase Processing and Value Adding Expenditure under this pillar have been channelled through MCIL, Ministry of Health (MOH) and SROS programmes summarised below: Figure 30: Pillar 2 Trends, 2013/14-2016/17 $5,000,000.00 11 _ i _ r __ 1,_ L_ L L L J J _ -~;- ""~-~ $4,500,000.00 .. ..,..,,.; ""~ $4,000,000.00 ~ ·r f 777~1~i~~~r $3,500,000.00 $3,000,000.00 $2,500,000.00 $2,000,000.00 $1,500,000.00 I H f: I H I I $1,000,000.00 $500,000.00 1 ' f ,- $- 2013/14 2014/15 2015/16 2016/17 TOTAL $2,741,320.00 •f $2,759,027.70 $2,842,457.00 $4,528,127.00 f f f fff f~ Tier 2: Trade Sector Support Programme - Activities 2.3.1, 4.2.1, $- $120,000.00 $38,400.00 $1,848,000.00 4.2.2 & 4.2.3 ($2 mil) t t t Labour Force Survey ($0.02 mil) $- $- $- $23,000.00 .. UNDP SDGF ($0.14 mil) $- $- $- $144,000.00 t t t SROS 5 - Commercial Technical $804,497.00 $601,798.00 $782,591.00 $743,196.00 Services ($2.9 mil) I t t t SROS Output 4 - Industrial Product $560,514.00 $604,687.00 $607,555.00 $584,445.00 Development ($2.3 mil) t t t MOH 4 - Health Promotion & $177,122.00 $185,514.70 $198,651.00 $- Preventive Health Services (0.56 mil) + + + MCIL 5 - Administration of Apprenticeship Scheme and $498,242.00 $522,484.00 $535,065.00 $497,141.00 Employment (Formerly Output 5 &6 now merged) ($2 mil) t t f MCIL 4 - Enforcement of Fair Trading and Codex Development ($2.8 mil) $700,945.00 $724,544.00 $680,195.00 $688,345.00 t t Total recurrent expenditure for the period 2013/14 to 2016/17 amounted to $11 million for this outcome. This was mainly due to increasing expenditure on the financing of health promotion and preventative health services (with a focus on food safety) through MOH and introduction of commercial technical services through SROS in 2013/14. Expenditure for other programmes such as enforcement of Fair Trading and Codex development through MCIL and SROS industrial product development have maintained a fairly consistent level of spending. The development expenditure identified during this period under Pillar 2 amounted to $2.15 million in the assessed period. 41 Figure 31: Pillar 2 Expenditure, 2013/14 – 2016/17 22.2% 17.8% 15.2% 16.4% 6.9% 15.5% 1.1% 21.1% 0.2% • MCIL 4 - Enforcement of Fair Trading and Codex Development ($2.8 mil) • MCIL 5 - Administration of Apprenticeship Scheme and Employment (Formerly Output 5 &6 now merged) ($2 mil) • MOH 4 - Health Promotion & Preventive Health Services (0.92 mil) • SROS 4 - Industrial Product Development ($2.3 mil) • SROS 5 - Commercial Technical Services ($2.9 mil) • UNDP SDGF ($0.14 mil) • Labour Force Survey ($0.02 mil) • Tier 2: Trade Sector Support Programme - Activities 2.3.1, 4.2.1, 4.2.2 & 4.2.3 ($2 mil) 6.2.2.3.3 | Pillar 3 – Enhance Market Access & Visibility for Samoan Goods and Services The programmes under this pillar have been delivered through MAF, MCIL, Ministry of Foreign Affairs and Trade (MFAT), Ministry for Revenue (MfR) and the Small Business Enterprise Centre (SBEC). These programmes include both recurrent and development funded programmes as follows: Figure 32: Pillar 3 Expenditure, 2013/14 – 2016/17 0.8% 3.8% 12.0% 11.8% 9.2% 8.4% 8.8% 17.3% 10.0% 8.1% 0.8% 26.3% • MAF 3 - Agricultural Quarantine and Regulation Services ($5.1 mil) • MCIL 3 - Management of Investment Promotion & Industry ($2 mil) . • MCIL 9 - Seasonal Employment Unit (formerly under MPMC) ($1.7 mil) MCIL Output by Third Party - SBEC grant ($1.8 mil) • MCIL State Transaction - Contribution to Private Sector ($0.75 mil) • MCIL State Transaction - PSSF ($0.15 mill) • MFAT 5 - Trade Development and Promotion ($2.3 mil) • MFR 7 - Trade Facilitation ($2.3 mil) • Tier 2: Trade Sector Support Programme - Activity 2.1.2 & 2.2.1 ($0.16 mil) • Private Sector Support Facility ($1.6 mil) • Small Business Enterprise Centre ($1.65 mil) 42 Figure 33: Pillar 3 Trends, 2013/14-2016/17 $8,000,000.00 $7,000,000.00 $6,000,000.00 $5,000,000.00 $4,000,000.00 $3,000,000.00 $2,000,000.00 $1,000,000.00 $- ....... _ .. _._ -·-·-· 2013/14 2014/15 2015/16 2016/17 c:::::::J TOTAL $3,797,514.00 $7,359,319.00 $4,303,086.00 $4,158,562.75 + ~ Small Business Enterprise Centre $- $1,655,356.00 $- $- ($1.65 mil) + ~ Private Sector Support Facility ($1.6 $- $1,582,400.00 $- $- mil) + ~ Tier 2: Trade Sector Support Programme - Activity 2.1.2 & 2.2.1 $- $33,000.00 $66,000.00 $66,000.00 ($0.16 mil) + ~ MFR 7 - Trade Facilitation ($2.3 mil) $481,997.00 $569,972.00 $642,282.00 $617,129.00 ~ MFAT 5 - Trade Development and $547,042.00 $595,746.00 $609,453.00 $593,553.00 Promotion ($2.3 mil) ~ MCIL State Transaction - PSSF ($0.15 $50,000.00 $50,000.00 $50,000.00 $- mill) + ~ MCIL State Transaction - Contribution $150,000.00 $200,000.00 $200,000.00 $200,000.00 to Private Sector ($0.75 mil) + ~ MCIL Output by Third Party - SBEC $450,000.00 $450,000.00 $450,000.00 $450,000.00 grant ($1.8 mil) + ~ MCIL 9 - Seasonal Employment Unit $403,352.00 $443,953.00 $494,184.00 $389,358.75 (formerly under MPMC) ($1.7 mil) + ~ MCIL 3 - Management of Investment $486,148.00 $468,164.00 $489,683.00 $526,176.00 Promotion & Industry ($2 mil) ~ MAF 3 - Agricultural Quarantine and $1,228,975.00 $1,310,728.00 $1,301,484.00 $1,316,346.00 Regulation Services ($5.1 mil) The total recurrent expenditure amounted to $16.2 million during this period with an average annual expenditure of $4 million. The major recurrent expenditure items under this pillar include the provision of agricultural quarantine and regulation services through MAF, management of investment promotion and industry through MCIL, enhancement of trade development and promotion through MFAT and trade facilitation through MfR. Support to agencies outside government has been provided mainly to SBEC which has received on average operational support of $0.4 million. Direct grants for Private Sector Organisations increased to $0.2 million per annum in this period. 43 The total development expenditure under Pillar 3 has amounted to $3.4 million during the period 2013/14 to 2016/17 and indicates a spike in FY2014/15 due to the bulk investment by the New Zealand Aid Programme into their Private Sector Development initiatives, such as the Private Sector Support Facility (PSSF) and their funding support to the SBEC. This period also marks the beginning of implementation of the Trade Sector Support Programme (TSSP), funded through the Tier 2 window of the Enhanced Integrated Framework (EIF). 6.2.2.3.4 | Pillar 4 Sector Coordination and Support Support for sector coordination has been provided through both the recurrent and development programmes as summarised below: Figure 34: Pillar 4 Trends, 2013/14-2016/17 $4,500,000.00 $4,000,000.00 $3,500,000.00 $3,000,000.00 $2,500,000.00 $2,000,000.00 $1,500,000.00 $1,000,000.00 $500,000.00 $- 2013/14 2014/15 2015/16 2016/17 c:::::::J TOTAL $3,555,747.00 $4,250,269.00 $3,948,337.00 $4,205,656.00 -0-- EIF Tier 2 (Trade Sector Support Programme) - Activities 1.1.1, 1.1.2, $- $591,756.00 $144,000.00 $596,868.00 1.1.3, 1.1.4, 1.1.5, 1.2.1, 2.1.1, 3.1.1 & Contingency ($1.3 mil) ~ -0-- EIF Tier 1 (National Implementation $432,000.00 $432,000.00 $576,000.00 $672,000.00 Arrangements) ($2.1 mil) ~ -0-- SBS 3 - Compilation of Finance Statistics (Formerly part of Output 5 under MoF) $436,624.00 $459,586.00 $479,283.00 $467,608.00 ($1.8 mil) ~ -0-- SBS 2 - Compilation of Economics $437,585.00 $429,237.00 $469,150.00 $465,638.00 Statistics ($1.8 mil) ~ -0-- MCIL 8 - Management of the Registries of Companies, Intellectual Properties $647,806.00 $644,960.00 $617,822.00 $586,957.00 ($2.5 mil) ~ -0-- MCIL 7 - Enforcement of Occupational, $180,068.00 $181,308.00 $174,596.00 $271,081.00 Safety and Health Standards ($0.8 mil) ~ -0-- MCIL 6 - Enforcement of Labour Standards and Assessment of Work $397,766.00 $403,138.00 $401,243.00 $464,601.00 Permits ($1.7 mil) ~ ~ -0-- MCIL 2 - Ministerial Support ($1.3 mil) $459,862.00 $433,425.00 $425,327.00 $- ~ ~ -0-- MCIL 1 - Policy Advice to the $564,036.00 $674,859.00 $660,916.00 $680,903.00 Responsible Minister ($2.6 mil) L 44 Total recurrent expenditure on these programmes during the period 2013/14 to 2016/17 is $11.4 million and shows an increasing trend per annum with major expenditure items including the compilation of trade statistics through the Samoa Bureau of Statistics (SBS), and management of companies and intellectual property rights (e.g. patents, trademarks etc.), enforcement of labour standards, work permits and occupational, safety and health standards through MCIL. Support to the TCMCU is also provided under this pillar through the MCIL policy advice output. Total development expenditure amounted to $3.4 million during this period with the approval and implementation of the Tier 1 National Institutional Agency (NIA) Support Project funded under the Enhanced Integrated Framework (EIF). The funding approved for this project has helped establish the TCMCU under MCIL and is expected to continue under the re-current budget. The EIF Tier 2 TSSP project approved in 2014 mobilised in FY2015/16. Figure 35: Pillar 3 Expenditure, 2013/14 – 2016/17 11.3% 11.5% 15.6% 8.3% 21.6% 5.1% 13.2% 10.4% 8.3% 16.2% MCIL 1 - Policy Advice to the Responsible Minister ($2.6 mil) MCIL 2 - Ministerial Support ($1.3 mil) MCIL 6 - Enforcement of Labour Standards and Assessment of Work Permits ($1.7 mil) MCIL 7 - Enforcement of Occupational, Safety and Health Standards ($0.8 mil) MCIL 8 - Management of the Registries of Companies, Intellectual Properties ($2.5 mil) SBS 2 - Compilation of Economics Statistics ($1.8 mil) SBS 3 - Compilation of Finance Statistics (Formerly part of Output 5 under MoF) ($1.8 mil) EIF Tier 1 (National Implementation Arrangements) ($2.1 mil) EIF Tier 2 (Trade Sector Support Programme) - Activities 1.1.1, 1.1.2, 1.1.3, 1.1.4, 1.1.5, 1.2.1, 2.1.1, 3.1.1 & Contingency ($1.3 mil) 6.2.3 | Expenditure Analysis and Issues Based on the trends and expenditures in all pillars, the areas that the sector will need to address in the next four years include: Table 11: Key Sector Issues PILLAR ISSUES/ANALYSIS Pillar 1: Improve 1.1 Improve productivity of key industries Industrial Supply Significant funding support (currently provided through MAF to increase production of crops, and Productivity livestock and fisheries) has not resulted in increased agriculturally based exports. Alternative implementation modalities may be needed to ensure increased production of priority products such as coconut and cocoa.

1.2 Consistent quality and quantity of primary sector supply Further support needed for research projects to improve the consistency of quality and quantity of selected plant and food products. Focus on climate resilient crops and livestock is also essential. In terms of services, there is a need to strengthen working relations with the Education Sector to match the curricula to skills needed in the private sector. The private sector also need to ensure competitive packages to entice people to pursue a certain education pathway. 45 PILLAR ISSUES/ANALYSIS Pillar 2: Increase 2.1 Increase number of value-added products Processing International commodity prices are higher for products that have been processed such as virgin Activities and coconut oil. There is a need to improve access of businesses to post-harvest equipment and Value Addition facilities that will raise the value of products and ensure efficient production levels. Further development of products that have higher commercial value is also critical.

2.2 Improve quality assurance standards for processing industries Need to ensure acceptable standards are maintained through existing International Standards Organisation (ISO) programmes and planned introduction of Hazard Analysis and Critical Control Points (HACCP) or ISO 22000 (food safety) programmes for both manufacturers and service providers. There is also the need to properly transpose Codex Alimentarius food standards into the Samoa context to ensure competitiveness of products in international markets.

2.3 Establish quality standards for key services Low employment levels in key industries indicate further support is needed to enhance the skills being promoted through the Apprenticeship Programme and Trade Testing Programme. There is also a need for accreditation of the trade and apprenticeship schemes to ensure international recognition. There is also the need to make these programs more enticing for female to join and pursue a trade. There is also the need to change perceptions towards trades, where people need to see it as a viable career path. Trade programs should also be tailored to market demand. Pillar 3: Enhance 3.1 Reduce cost of doing business Market Access Focus on improving the support services to businesses through improved and cost-effective trade and Visibility for facilitation measures at the border (e.g. quarantine services, customs services etc.). Samoan Goods and Services 3.2 Improve access to various private sector support schemes The impacts of the schemes that have been operational for the last five years need to be evaluated, to ensure they are still relevant to priorities coming through the sector. Programmes to be reviewed include PSSF, SBEC and the Duty Concession Schemes such as Code 121 and 131. There is a need to formulate more responsive schemes, that would entice entrepreneurial ventures.

3.3 Improve trade balance Focus on improving the balance of trade through increased use of relevant trade agreements such as WTO, PICTA etc. Need for the trade agenda to be more focussed on core export markets such as American Samoa. Also essential to conduct an assessment of the need for a centralised export services agency. Moreover, there is also great value in building upon the surplus of trade in services and see how this can be further developed to complement trade in goods.

3.4 Increase labour mobility in foreign markets With the shift of the Seasonal Employment Unit to MCIL, there is potential to further seasonal labour mobility and increase national gains from such schemes. There is also potential in reinvestment of earnings and training into viable ventures, ensuring consistent financial support for beneficiaries and their families. Moreover, there is also a need to focus on improving trade in services with targeted support to core services in financial, telecommunications and agricultural sectors. Pillar 4: 4.1 Coherent Sector planning and policy formulation Strengthen Support to be continued for the Sector Steering Committee through the TCMCU and development Sector of core elements such as the MTEF and monitoring and evaluation (M&E) framework. Annual Coordination, sector reviews are essential to ensure opportunities and challenges are addressed and priorities Planning and updated. Not only is that but the relevance of a bulk of business laws in Samoa need to be Support assessed, and considering emerging issues such as e-commerce, technology and intellectual properties, gender and equal access. Focus is also needed on provision of core legislation that will impact on the sector including the Citizenship Bill, Legal Metrology Bill, Food Bill etc. 46 PILLAR ISSUES/ANALYSIS

4.2 Accurate and timely sector statistics for planning Core agencies must provide timely and accurate statistics for monitoring the performance of the sector. There is also the need for more evidence-based policy making that cater to the needs of the general public and not to likings of a selected few.

4.3 Strengthen capacity of Sector implementing agencies Essential to ensure annual training plans are developed for all sector training, to take advantage of available courses through agencies such as WTO and the Samoa In-Country Training Programme.

4.4 Integration of cross-cutting issues into the Sector Climate change plays a significant role in the sector given its influence on agricultural production and business as a whole. Need to assess relevant initiatives to ensure resilience of both farming and retail businesses in adapting to, or mitigating the risks associated with, climate change. Focus on the role of female entrepreneurship to reflect progress in ensuring sustainable development goals in the sector. 6.2.4 | MTEF Forward Trends 6.2.4.1 | Total Sector Expenditure Total estimated sector expenditure for the period 2017/18 to 2020/21 is $95.2 million with $75.1 million to be funded from the recurrent budget and $20.1 million from development sources. Table 12: Total Forward Sector Expenditure: FY 2017/18 to 2020/21 PILLAR 2017/18 2018/19 2019/20 2020/21 Recurrent $8,636,565.75 $8,713,622.19 $8,689,809.98 $8,658,041.98 Development $1,800,000.00 $1,800,000.00 $1,800,000.00 $1,800,000.00 Pillar 1: Improve Industry Supply & $10,436,565.75 $10,513,622.19 $10,489,809.98 $10,458,041.98 Productivity Sub-Total Recurrent $2,904,166.30 $2,900,597.38 $3,107,026.58 $3,083,443.48 Development $1,236,000.00 $194,000.00 $144,000.00 $144,000.00 Pillar 2: Increase Processing & Value Adding $4,140,166.30 $3,094,597.38 $3,251,026.58 $3,227,443.48 Sub-Total Recurrent $4,112,931.44 $4,241,785.80 $4,326,091.50 $4,398,342.87 Development $3,081,600.00 $2,610,000.00 $2,250,000.00 $2,070,000.00 Pillar 3: Enhance Market Access and $7,194,531.44 $6,851,785.80 $6,576,091.50 $6,468,342.87 Visibility for Samoan Goods & Services Sub- Total Recurrent $2,799,192.75 $2,833,019.69 $2,843,002.61 $2,853,000.76 Development $1,182,508.92 $- $- $- Pillar 4: Strengthen Sector Coordination, $3,981,701.67 $2,833,019.69 $2,843,002.61 $2,853,000.76 Planning and Support Sub-Total Total Recurrent $18,452,856.24 $18,689,025.05 $18,965,930.67 $18,992,829.09 Total Development $7,300,108.92 $4,604,000.00 $4,194,000.00 $4,014,000.00 Grand Total $25,752,965.16 $23,293,025.05 $23,159,930.67 $23,006,829.09 6.2.4.2 | Total Expenditure by Pillars Based on the total sector expenditure estimates for the next four years, Pillars 1 and 3 have significantly increased in value compared to the 2013/14-2016/17 period. Pillar 1 notes an estimated 19.5% increase, and Pillar 3 estimated a 38.1% increase. Pillar 2, more or less remains the same noting a 3.8% increase, and investment into Pillar 4 estimates a decline by 21.6% compared to the 2013/14-2016/17 figures. 47 The bulk of development investment for the forward trends are attributed to the New Zealand-Samoa Cocoa Development Initiative (under Pillar 1), and the New Zealand Private Sector Development initiatives through SBEC and the PSSF (under Pillar 3). There is some estimated investment from the UN-SDGF through a UNDP-WIBDI project and these are noted under Pillar 2. Upon completion of the EIF projects, the bulk of costs for Pillar 4 would have been absorbed under the recurrent budget. Figure 36: Total Sector Estimates by Pillar (% Share), 2017/18 – 2020/21 • 1 - Improve Industry Supply & Productivity ($41.9 million) 13.1% • 2 - Increase Processing & Value Adding ($13.7 million) 44.0% 28.5% • 3 - Enhance Market Access and Visibility for Samoan Goods and Services ($27.1 million) 14.4% • 4 - Strengthen Sector Coordination, Planning and Support ($12.5 million) 6.2.4.2.1 | Pillar 1 Industry Supply & Productivity The total expenditure estimated for Pillar 1 initiatives over the next four years is $41.9 million with $34.7 million funded through the recurrent budget and $7.2 million funded from ongoing and pipeline development sources. Recurrent expenditure through MAF indicates that an expected average expenditure of $3.9 million per annum will be spent on provision of planting materials (including cocoa, coconut etc.), development of export pathways for priority crops as well as marketing training for farmers. Average spending of $1.8 million per annum is expected for the provision of improved breeding stock to increase import substitution and for improving food safety of meat products. A further $2.2 million per annum is to be provided for the diversification of fisheries management systems with high trade potential. Transactions on behalf of State through MCIL entails an average $0.15 million per annum paid to the National University of Samoa for services rendered in the Apprenticeship Scheme. SROS is also budgeted a $0.6 million per annum to provide food technology technical research and advice, locally. SROS recurrent expenditure will focus on provision of plant and food research projects targeting cocoa and coconut as well as other priority crops. A new initiative looking at improving the climate resilience of selected crops will be developed in collaboration with SROS and MCIL to increase the ability of Samoa’s main crops to survive possible future extremes of rainfall and/or drought and rises in the salinity of groundwater. For development expenditures it is estimated for the New Zealand funded Samoa Cocoa Development Initiative to begin on- the-ground work in 2018. The project envisages to build upon the work of existing or pipeline projects to increase value and volume of Samoan cocoa exports per annum and also increase financial returns for smallholder cocoa growers. The project estimates a five-year life span with a budget of NZ$4.8 million. The initiative is driven by AgriChain New Zealand and the Samoa Chamber of Commerce (SCCI) and sub-contracting Massey University (New Zealand). The other project that is 48 estimated to filter through the forward estimate period is the assistance from the UN Sustainable Development Goals Fund (SDGF) through a UNDP-WIBDI understanding. For this Project, the total amount funded is US$0.5, where US$0.44 is committed to WIBDI to finance equipment, provide village youth trainings and provide employments for unemployed youth. Figure 37: Pillar 1 forward estimates, 2017/18 - 2020/21 $12,000,000.00 $10,000,000.00 -- - - - -- ~ . ...-- - - Q $8,000,000.00 I - ... ~ - $6,000,000.00 - -- -- ... ,... ... $4,000,000.00 -- -0 $2,000,000.00 $- 2017/18 2018/19 2019/20 2020/21 + c:::::::J TOTAL ($41.9 mil) $10,436,565.75 $10,513,622.19 $10,489,809.98 $10,458,041.98 + ~ UNDP SDGF ($0.28 mil) $72,000.00 $72,000.00 $72,000.00 $72,000.00 ~ Samoa Cocoa Development Initiative $1,728,000.00 $1,728,000.00 $1,728,000.00 $1,728,000.00 ($6.91 mil) ~ SROS 5 - Food Technology Division $608,083.50 $600,502.63 $600,839.28 $601,506.60 ($2.41 mil) + ~ MCIL Transactions on behalf of State - Apprenticeship Training Provider (NUS) $151,670.00 $151,670.00 $151,670.00 $151,670.00 ($0.6 mil) + MAF 6 - Fisheries Management, Planning & Research Services ($8.84 $2,195,534.75 $2,218,362.94 $2,219,554.67 $2,212,683.09 mil) + ~ MAF 5 - Animal Production, Health & $1,764,624.50 $1,793,394.38 $1,793,845.72 $1,788,885.15 Research Services ($7.14 mil) + ~ MAF 4 - Crops, Research, Commercial Development & Advisory Services $3,916,653.00 $3,949,692.25 $3,923,900.31 $3,903,297.14 ($15.69 mil) 6.2.4.2.2 | Pillar 2: Processing and Value Adding The total expenditure estimated for Pillar 2 initiatives over the next four years is $13.5 million with $12 million funded through the recurrent budget and $1.5 million to be funded from ongoing and pipeline development sources. Recurrent expenditure through MCIL will continue to support the enforcement of fair trading and development of Codex standards. The development initiatives identified include the support needed for fair trade certification for producer groups and food safety certification of both import substitution and exporting enterprises and should include producer groups and private enterprises who are not members of the Samoa Chamber of Commerce and SAME to promote inclusiveness in the 49 use of these resources. To date SAME has received funding through PSSF and the EIF projects for the initiation of the ISO programme. Funding support through MCIL will continue with allocation of about $2 million per annum to support the management of the Apprenticeship Programme and Trade Testing Programme and to review the relevance and quality of the programme to the critical needs of the private sector. Figure 38: Pillar 2 forward estimates, 2017/18 - 2020/21 $4,500,000.00 $4,000,000.00 $3,500,000.00 $3,000,000.00 $2,500,000.00 :.,.: $2,000,000.00 ..,.., ~ $1,500,000.00 t $1,000,000.00 $500,000.00 t [ $- ~-'-"-"+"- ~ 2017/18 2018/19 2019/20 2020/21 c:::::::J TOTAL ($13.5 mil) $3,922,296.30 $3,094,597.38 $3,251,026.58 $3,227,443.48 + ► -0- Tier 2: Trade Sector Support $720,000.00 $- $- $- Programme - Activities 4.2.3 ($0.7 mil) + ► - 0 - Labour Force Survey ($0.2 mil) $154,130.00 $50,000.00 $- $- - 0 - UNDP SDGF ($0.57 mil) $144,000.00 $144,000.00 $144,000.00 $144,000.00 - 0 - SROS 5 - Commercial Technical Services $733,020.50 $715,151.38 $743,489.72 $733,714.40 ($2.9 mil) + ► - 0 - SROS Output 4 - Industrial Product $589,300.25 $596,496.81 $594,449.27 $591,172.83 Development ($2.4 mil) + ► -0- MOH 4 - Health Promotion & $370,105.30 $374,070.63 $562,246.40 $553,819.75 Preventive Health Services ($1.86 mil) + ► -0- MCIL 5 - Administration of Apprenticeship Scheme and $513,233.00 $516,980.75 $515,604.94 $510,739.92 Employment (Formerly Output 5 &6 now merged) ($2 mil) + MCIL 4 - Enforcement of Fair Trading $698,507.25 $697,897.81 $691,236.27 $693,996.58 and Codex Development ($2.8 mil) SAME will be driving through programmes for ISO 9001, ISO 22000, ISO 14000 and HACCP for its members over the next four years. SAME are aiming to work with a total of 36 companies over the next four years (approximately 12 companies per annum) in various areas of manufacturing and processing and the proposed costing will cover for company members to be trained in internal auditing, quality manual development and initial certification. Recertification will be a cost to the companies and cost sharing arrangements (at least 70:30 ratio) will be encouraged to ensure strong ownership and commitment by qualifying enterprises to maintain high operational performance and food standards consistent with market requirements. 50 Other development initiatives identified under MCIL include the need for technical assistance to assist with the development of standards for selected products including meat, coconut oil, cocoa etc. To date only standards for eggs have been fully established. Technical assistance will also be provided to review the existing legislation to ensure it is in line with other relevant acts. The other project that is estimated to filter through the forward estimate period is the assistance from the UN Sustainable Development Goals Fund (SDGF) through a UNDP-WIBDI understanding. For this Project, the total amount funded is US$0.5, where US$0.44 is committed to WIBDI to finance equipment, provide village youth trainings and provide employments for unemployed youth. Spending through SROS recurrent budget is expected to continue to provide for selected product development and prototypes as well as accredited analytical tests and procurement of essential equipment needed to improve “added value” options for Samoa’s tradable products. It is noted that SROS will also be receiving additional equipment and operational support through Tier 2 TSSP Component 2. These costs have been reflected in Pillar 1. An allocation of $1.86 million through MOH’s recurrent budget is expected to implement the Food Act 2015. There could also be come cost-sharing for this activity among the budgets of relevant implementing agencies such as MCIL and MAF since the Act came into force. 6.2.4.2.3 | Pillar 3: Market Access The total expenditure estimated for Pillar 3 initiatives over the next four years is $27 million with $17.1 million funded through the recurrent budget and $9.9 million to be funded from ongoing and pipeline development sources. Total recurrent expenditure for MAF through its Agricultural Quarantine and Regulation Services output is expected to continue in order to provide export certification as well as facilitate import permits and HTFA certification. There are no development initiatives foreseen under MAF for this pillar, as MAF’s needs are being addressed under development programmes in the Agriculture Sector. MFAT will continue to lead trade development and promotion services through the coordination of WTO and PACER Plus commitments, finalisation of EPA and interim EPA negotiations, implementation of the PICTA and pursuit of trade arrangements with American Samoa. The provision of technical assistance through relevant sources including WTO, PACER Plus will continue as in-kind contributions and will be managed by MFAT in collaboration with TCMCU through the sector capacity building programme under Pillar 4. Recurrent expenditures for MfR will continue to concentrate on facilitation of trade with a focus on improving trading costs and measures across borders. Development expenditures of MfR associated with trade facilitation are currently being catered for under the Customs Modernisation and other infrastructural projects which are reflected under the Finance Sector Plan. MCIL total recurrent expenditure will continue for the management of investment promotion and industry development including the Duty Concession Scheme, Export Development Scheme, Foreign Investment Registration etc. Other expenditures to be channelled through Outputs by Third Parties include the annual grant to SBEC for two purposes: management of the Loan Guarantee Scheme (targeting small to medium sized businesses) and providing tailored business financial management training and advice. The transition of the Seasonal Employment Unit from MPMC to MCIL is also captured under this Pillar as MCIL Output 9. The Unit will be primarily responsible for the management of the seasonal labour mobility schemes in New Zealand and Australia, and further develop these schemes to cover additional trades and other regional and international markets. The projections for expanding the Unit are accordingly forecasted in the figures presented. Other Transactions on Behalf of the State will also continue, with the provision of annual grants to private sector organisations such as SCCI, WIBDI, SAME etc. The sector will ensure PSO grants will increase to benefit all PSOs and CBOs to promote inclusiveness in private sector participation in activities supported by their respective funding as well as developing strict guidelines to ensure appropriate use of these funds. 51 The development expenditures foreseen under MCIL include the remaining implementation of the Tier 2 TSSP activities 2.1.2 and 2.2.1. Also captured is the anticipated investment by New Zealand into their Private Sector Development initiatives in Samoa, which they envisage to channel through SBEC covering their in-kind contribution to SBEC’s work and an additional funding for the revamped Private Sector Support Facility (PSSF) which is also expected to be channelled through SBEC. Figure 39: Pillar 3 forward estimates, 2017/18 - 2020/21 $8,000,000.00 $7,000,000.00 - - - --- - "" $6,000,000.00 $5,000,000.00 ,.., .-... - .... $4,000,000.00 -.... r,. .... "" - "" ~ - J $3,000,000.00 - .... - "" - X J $2,000,000.00 "" - - J "' -- .... ~ - $1,000,000.00 "" - "' u $- 2017/18 2018/19 2019/20 2020/21 r r c::::::::J TOTAL ($27 mil) $7,148,931.44 $6,851,785.80 $6,576,091.50 $6,468,342.87 ~ ~ Small Business Enterprise Centre ($9.9 $2,970,000.00 $2,610,000.00 $2,250,000.00 $2,070,000.00 mil) ~ ~ Tier 2: Trade Sector Support Programme - Activity 2.1.2 & 2.2.1 $66,000.00 $- $- $- ($0.07 mil) ~ ~ MFR 7 - Trade Facilitation ($2.39 mil) $577,845.00 $601,807.00 $609,765.75 $601,636.69 ~ ~ MFAT 5 - Trade Development and $586,448.50 $596,300.13 $596,438.66 $593,185.07 Promotion ($2.37 mil) r r ~ MCIL State Transaction - Contribution $200,000.00 $250,000.00 $250,000.00 $300,000.00 to Private Sector ($1 mil) r r ~ MCIL Output by Third Party - SBEC $450,000.00 $450,000.00 $450,000.00 $450,000.00 grant ($1.8 mil) r r ~ MCIL 9 - Seasonal Employment Unit $516,711.94 $545,051.92 $616,326.65 $646,862.32 (formerly under MPMC) ($2.3 mil) ~ ~ MCIL 3 - Management of Investment $492,542.75 $494,141.44 $500,635.80 $503,374.00 Promotion & Industry ($2 mil) ~ ~ MAF 3 - Agricultural Quarantine and $1,289,383.25 $1,304,485.31 $1,302,924.64 $1,303,284.80 Regulation Services ($5.2 mil) 6.2.4.2.4 | Pillar 4: Sector Coordination and Support The total expenditure estimated for Pillar 4 initiatives over the next three years is $12.5 million with $11.3 million funded through the recurrent budget and $1.18 million from ongoing and pipeline development sources. 52 Recurrent expenditure through SBS will be provided to ensure compilation of economic statistics including merchandise reports as well as finance statistics relevant to the sector (such as the monthly Industrial Production Index). Key development expenditures foreseen include the implementation of the Business and Economics surveys to be funded under Tier 2 TSSP Component 1. The planned Labour Force Survey undertaken by SBS and MCIL in 2017, with funding from the International Labour Organisation and the EIF, is to be published in 2018. Figure 40: Pillar 4 forward estimates, 2017/18 - 2020/21 $4,500,000.00 7==7==~=== $4,000,000.00 ,-\.r-, f . $3,500,000.00 - -l- - - - - - $3,000,000.00 _l_ $2,500,000.00 ~~ f. ~ $2,000,000.00 .... $1,500,000.00 ....... ~f 4 $1,000,000.00 ~ - r- r ..,..,.. E l - $500,000.00 ........ ......../ ........ ~-{~ $- 2017/18 2018/19 I ~ 2019/20 2020/21 c:::::::J TOTAL ($12.5 mil) $3,981,701.67 $2,833,019.69 $2,843,002.61 $2,853,000.76 ~ ~ EIF Tier 2 (Trade Sector Support Programme) - Activities 1.1.1, 1.1.2, $1,182,508.92 $- $- $- 1.1.3, 1.1.4, 1.1.5, 1.2.1, 2.1.1, 3.1.1 & Contingency ($1.18 mil) ~ SBS 3 - Compilation of Finance Statistics (Formerly part of Output 5 under MoF) $460,775.25 $466,813.06 $468,619.83 $465,954.04 ($1.86 mil) ~ ~ SBS 2 - Compilation of Economics $450,402.50 $453,606.88 $459,699.34 $457,336.68 Statistics ($1.82 mil) ~ ~ MCIL 8 - Management of the Registries of Companies, Intellectual Properties $624,386.25 $618,531.31 $611,924.14 $610,449.68 ($2.5 mil) ~ ~ MCIL 7 - Enforcement of Occupational, $201,763.25 $207,187.06 $213,656.83 $223,422.04 Safety and Health Standards ($0.85 mil) ~ ~ MCIL 6 - Enforcement of Labour Standards and Assessment of Work $416,687.00 $421,417.25 $425,987.06 $432,173.08 Permits ($1.7 mil) ~ ~ MCIL 1 - Policy Advice to the $645,178.50 $665,464.13 $663,115.41 $663,665.26 Responsible Minister ($2.6 mil) MCIL’s recurrent expenditure will slightly increase once the Tier 1 NIA Support Project ends in 2017 given the need for absorbing the project personnel currently funded under this project. Moreover, their recurrent expenditure will continue for the provision of policy advice to the responsible minister, the running of the TCMCU, enforcement of labour standards and assessment of work permits, enforcement of occupational safety and health standards as well as the management of the 53 registries of companies and intellectual properties. It is expected that a new budget output will be established for TCMCU given its role in coordinating and implementing the TCM-SP 2017/18-2020/21, in the next five years. Costs will include the incorporation of TCMCU personnel into this new output and the revising of the work done Tier 1 NIA Support Project that is due to end in 2017. Development initiatives to be funded through MCIL include the completion of Tier 2 TSSP Component 1 programme which will provide two additional Principal Officers to TCMCU as well as vehicles and technical assistance to key implementing agencies such as WIBDI and STEC. Technical assistance will also be sought and used to finalise critical legislation and regulations. The TCM-CU will also continue to work together with local and international climate change organisations to look at ways to incorporate climate change mitigation and resilience measures in the Sector. 6.3 | TCM-SP 2017/18 – 2020/21 Living Action Matrix The following is the TCM-SP’s living Action Matrix, which will be constantly reviewed in Annual Reviews to ensure the attainment of the End-of-Sector Plan vision and mission: Table 13: TCM-SP 2017/18-2020/21 Living Action Matrix Pillar/Outcomes Outputs # Actions 1 – Improve 1.1 – Improved 1.1.1 All stakeholders must work in a durable value chain partnership with a view of industrial supply productivity of transforming the largely subsistence economy in Samoa. To achieve this, serious efforts and productivity key industries must be planned and implemented with the objectives of developing a conducive environment that would attract large commercial ventures into the Samoa primary sector.

1.1.2 Transform the informal sector in Samoa so that it provides decent employment and increased productivity.

1.1.3 Increase sensitization of both men and women regarding the Trade Schemes offered by MCIL for skilled workers without formal certification.

1.1.4 Carry out value-chain analysis of potential traditional/tropical products

1.1.5 Adopt a cluster development approach, establish business incubators and encourage businesses to network and cluster to achieve economies of scale and reduce unit costs of common overheads. Establish a national networking database under NPSO with the assistance of MCIL

1.1.6 Limit foreign retailers of imported goods in the rural communities

1.1.7 Tailor and enhance more training programs in business management, accounting, customer care and etc. through institutions such as SBEC

1.1.8 Integrate rural subsistence into the urban monetized economy by focusing in rural development initiatives based on value chain principles. 1.2 – Consistent 1.2.1 Promote use of codex standards, codex and guidelines as the basis for national quality and standard development. Promote the development and enhancement of the capabilities quantity of of the National Codex Contact Point (CCP), the Samoa National Codex Council primary sector (SNCC), delegates and stakeholders on their core functions and to expand the supply engagement with the public on Codex updates.

1.2.2 Address the existing imbalance between labour supply and labour demand. Enhance the relevant skills acquired by the workforce and what is needed by employers.

1.2.3 Provide direct support for local entrepreneurs that have high employment potential. Also eliminate obstacles that constraint youths from participating in productive employment.

1.2.4 Put in place effective and efficient centres that will provide employment services including the registration for those seeking employment.

1.2.5 Enhance the business mind-set and capacity among business owners, subsistence and semi-commercial crop growers/farmers.

1.2.6 Enhance technical advice and capacities on farming management, specifically crop farming cycles and maintenance of a resilient/consistent supply of goods.

1.2.7 Large Commercial Agricultural businesses should be encouraged to work /cluster with small semi-commercial farmers to share expertise and resources (machineries/exports markets) that are required to cultivate additional lands for farming purposes.

1.2.8 Increase the acreage of traditional/tropical produces to meet the national and international demand. 54 Pillar/Outcomes Outputs # Actions

1.2.9 Set up training and mentoring programme to enable farmers and primary producers to perform value-adding activities 2. Increase 2.1. Increase 2.1.1 Promote quality locally made products through improved marketing and branding processing number of initiatives as well as through the National Export Strategy. Encourage the production activities and value-added and consumption of locally produced goods and services. value-addition products 2.1.2 Enforce readable information on Samoan products in regional and international markets (including names, date of manufacture and expiry, physical address, packaging material, country of origin and internet based marketing portal and e-competitiveness).

2.1.3 Promote large scale commercial agriculture and rural agro processing to reduce rural unemployment and underemployment.

2.1.4 Review sector profiles for at least two industries

2.1.5 Linking industry development issues at national level with overall regional or international agreement Samoa is a party to

2.1.6 Expand the Apprenticeship Scheme with additional trades.

2.2. Improve 2.2.1 Coordinate and facilitate food and non-food safety standards. quality 2.2.2 Enhance the legislative framework to capture and formalise standards for local and assurance imported products, as well as ensuring fair trade initiatives standards for 2.2.3 Prioritise selected industries (fisheries, coconut, cocoa etc.) to roll out the ISO and key processing HACCP certification process and consider avenues in which costs of compliance can industries be reduced

2.2.4 Enhance Co-operation with Australia and New Zealand in assisting Samoa to comply with standards including capacity building on conformity assessment, mutual recognition and equivalence of product standards in ANZ markets.

2.3. Establish 2.3.1 Trade Panels and Industry to revise Industry Training on the Job Forms to be in line quality with National Competency Standards. standards for 2.3.2 Process the accreditation of the Apprenticeship Scheme. key services 2.3.3 Strengthen and empower the work of SQA to address skill shortages in Samoa.

2.3.4 Develop and implement guidelines on promotion of green jobs within trade implementing agencies. 3. Enhance market 3.1. Reduced 3.1.1 Develop simple business set-up processes and streamline them on electronic platforms. access and cost of doing 3.1.2 Develop of a central registration system for businesses in Samoa which would be used visibility for business by all Government agencies (MfR, NPF, ACC) building on the success of the online Samoan goods and company registration. services 3.1.3 Review national tariff structure to reduce tariffs on inputs and capital goods for local production process and create an investment environment for export

3.1.4 Implement Samoa’s Trade Facilitation Needs Assessment

3.1.5 Increase interventions aimed at reducing shipping costs

3.2. Improved 3.2.1 Efficient implementation of assistance schemes administered through the Sector and access to research into other new incentives in accordance with the need of industries. Develop, various private review and promote government assistance schemes geared towards the private sector support sector. To have a level playing field in terms of incentives and assistance between schemes foreign and local investors.

3.2.2 Integrate overseas trade promotions and investment schemes (citizenship, tax incentives, customary land access etc.) into targeted packages for investors and development of a financing strategy to assist the transition of small businesses for expansion and sustainability of initial support by Government that include initiatives through the DBS, SBEC, SACEP and SBI.

3.2.3 Increased support for commercial agriculture project especially access to government land, trainings for farmers, and providing duty concessions.

3.2.4 Increase access to Competitive Financing: financial assistance such as the export financial guarantee as the export financial guarantee scheme and revive the development band to be the principal lender for the sector.

3.2.5 To further enhance market access for local entrepreneur.

3.2.6 Promote the Personal Properties Securities Act (PPSA) as a means for lowering costs of accessing credit.

3.2.7 A survey to be conducted in collaboration with SCCI and SAME to establish the most utilised GSP schemes by exporters, identify challenges in utilisation and make recommendations towards enabling improved utilisation of the schemes. 55 Pillar/Outcomes Outputs # Actions

3.2.8 The private sector is encouraged to expand resources for marketing initiatives to evaluate overseas markets and develop relationships to secure market opportunities, including active participation in investment/trade missions and road shows.

3.2.9 Initiate and implement Public Private Partnerships (PPP) risk-sharing models in providing access to capital for MSME. This is by exploring utilisation of (i) Guaranteed lending through regulated banking financial firms; (ii) Intermediate Revolving lending through exempted non-bank financial firms and (iii) Other emerging financial instruments such as business angel financing and crowd funding.

3.2.10 Assess feasibility of establishing a carbon trading scheme/institution

3.2.11 Strengthen Government partnership with Private Sector organisations through cost- sharing and mutual capacity building.

3.3. Improved 3.3.1 Exploration of the accession to the iEPA (Interim Economic Partnership Agreement) trade balance with EU, to promote investment for development of fisheries in Samoa. Also push through the comprehensive EPA discussions enhance trading for all other goods.

3.3.2 Negotiate a formal trade and economic cooperation agreement bearing in mind the need to confirm a clear mandate for American Samoa to negotiate a Trade and Economic Cooperation Agreement (TECA) with Samoa that would be easy to implement with simplified rules of origin. The TECA should include a limited number of key products that would be of great interest to both countries.

3.3.3 Negotiate with China the possibilities of extending preferential access of Samoa’s products in consideration of the climate change impact on the economy and also in supporting trade development of Samoa.

3.3.4 Assist the Agriculture Sector with import substitution efforts and the Energy Sector with work on renewable energy sources which impacts the value of petroleum and like products that are imported into Samoa.

3.4. Increased 3.4.1 Provide administrative support for the Labour Employment and Export Program (LEEP) labour mobility and explore additional overseas seasonal employment opportunities for Samoa. in foreign Explore and develop additional bilateral schemes, such as the New Zealand Regional markets Seasonal Employment Scheme (RSE) and Australian Seasonal Workers Program (SWP), to facilitate mobility for both skilled and unskilled labour in the region and internationally.

3.4.2 Review implementation of measures and strategies to enhance the participation of Samoa’s services industry in international (services) trade including labour mobility

3.4.3 Include services liberalisation in the formal arrangement under negotiation. 4. Strengthen 4.1. Coherent 4.1.1 Develop and implement a National Industry Development Strategy/Industrial Policy to sector sector planning focus on enhancing value addition to products in areas which have comparative coordination, and policy advantage and ensure that the necessary investment climate in terms of infrastructure, planning and formulation legislation is strengthened. support 4.1.2 Promote the development of micro, small and medium enterprises (MSME) and implement macroeconomic policies and practices that are consistent with Samoa’s objective of increasing exports and enhancing competitiveness.

4.1.3 Develop and implement measures and strategies to improve the participation of Samoa’s services industry in international services trade

4.1.4 Strengthen the e-commerce regulatory framework & regulations.

4.1.5 Review and develop effective Industrial Relations, FEEP and OSH policies and procedures.

4.1.6 Incorporate Employment issues and target into the macroeconomic framework.

4.1.7 Strengthen Sector M&E Framework, Budgeting (MTEF) and TCM-CU capacity

4.1.8 Build on the Joint Policy Action Matrix (JPAM) to capture sources of sustainable financing

4.1.9 Review trade and other relevant commercial laws to create and support a dynamic trade sector

4.1.10 Undertake design and implementation of Special Economic Zones (SEZ) in Samoa focussing on the following areas: competitive tax and incentives regime; zone development and administration; environmental sustainability and climate change mitigation; and labour market productivity.

4.1.11 Improve the monitoring of local and foreign owned shops and issue warnings to those breaching any law and/or customs

4.1.12 Assess procedures, processes and documentation required for streamlining and improve efficiency inter-agencies 56 Pillar/Outcomes Outputs # Actions

4.1.13 Enhance commitment with the International Labour Organisation.

4.1.14 Enhance the legislative and regulatory framework for labour standards, employment relations, and occupational health and safety

4.1.15 Implement and monitor commitments made in all trade agreements/ arrangements. Create a development-oriented trade policy in line with Samoa's development goals

4.2. Accurate 4.2.1 Review, research and update investment opportunities to be promoted. and timely 4.2.2 Implementation of the Labour Market Information management system and collaborate sector statistics with key stakeholders for better operation. for planning 4.2.3 Create a Computerized Central Statistics Database for the Sector and its Implementing Agencies as a part of the management and information unit and use the data for research and diagnostic studies. Enhance an electronic database and filing system for sector implementing agencies. Implement the “One MCIL” initiative and provide resources

4.2.4 Statistics and performance monitoring indicators to be revisited (including disaggregation by age and gender) to measure Inclusive Growth as part of the Community Sector Plan 2016-2021 by MWCSD.

4.2.5 To develop measurable and substantive indicators to monitor results and performance from Trade Agreements (e.g. employment statistics from firms involved in export and tax revenue resulting from preferences accorded and MSMEs exporting to markets).

4.3. Strengthen 4.3.1 Develop monitoring and evaluation framework with Sector Implementing Agencies to capacity of guide and monitor their role in terms of compliance with their relevant mandate. sector Restructure Sector implementing agencies to reflect the extent of the sector mandate. implementing 4.3.2 More capacity building on Technical Barriers to Trade/Competition/Metrology and agencies Codex.

4.3.3 Strengthen tripartite dialogue with key stakeholders on all labour/OSH related matters.

4.3.4 Research and develop an electronic customers-centered system for FEEPS.

4.3.5 Develop the capacities of private sector institutions to effectively engage with government on trade policy formulation through training in technical trade issues, enhanced dissemination of relevant information and trade negotiations, etc.

4.3.6 Develop an electronic monitoring system for business environment and cost structure

4.3.7 Enhance the capacity of the Sector Implementing Agencies to meet the implementation requirements of the Sector policies

4.3.8 Enhance the country capacity to Implement its WTO obligations and continue to work with lead agencies in implementing the post Accession Matrix and effectively engage in trade negotiations through close collaboration with International institutional capacity strengthening institutions.

4.3.9 Design and implement an immediate educational enhancing program for the private sector in rapid participation in trade in services with industries being explored or integrated under modes (1) – (4) of PICTA. Work with training institutions to provide business/ entrepreneurial skills and other skills relevant to private sector development, competitiveness and trade policy.

4.3.10 Strengthened collaboration between MfR, MCIL, MPMC and other relevant agencies to address issues with tax collection, business and immigration laws

4.3.11 Training needs program developed in line with Customs

4.3.12 Improved border operations and Customs Control Area (CCA)

4.4. Integration 4.4.1 Develop a robust disaster recovery plan for all electronic systems to ensure business of cross-cutting continuity. issues into the 4.4.2 Sensitise the sector and its implementing agencies about climate change and sector adaptation and resilience measures

4.4.3 Integrate international goals and values into the sector in line with Samoa's national interest

4.4.4 Develop integrated climate resilient investments in collaboration with key sectors like energy and environment.

4.4.5 Incorporate Human Capital development into national objectives.

4.4.6 Ensure equal access for persons with specific needs (PWSN) in both paid and self- employment opportunities.

4.4.7 Promote gender equality in the work places and general employment opportunities. 57