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3.4. The Tonga Strategic Development Framework (TSDF II) governs long-term national planning. It is structured around seven national outcomes: (...) (f) land, the environment and climate, (...).

3.7. Tonga remains in second place in the World Risk Index in 2020. This is not due to a lack of preparedness — the index lists 69 countries worldwide that have lower resilience. Tonga's position is determined by its extreme exposure to natural disasters and vulnerability to climate change. The links between natural disasters and trade in Tonga were explored during the WTO's third Symposium on Natural Disasters and Trade in May 2019, which included a case study and presentation on Tonga's situation.

3.8. Tonga is particularly affected by tropical cyclones. The country experiences around two each year, of which on average one will be classed as a category 4 or 5 tropical cyclone. Cyclones cause varying degrees of damage and disruption, including to economic activity and international trade. The country is currently recovering from tropical cyclones Gita (February 2018, category 5), Tino (January 2020, category 3) and Harold (April 2020, category 5). Of these, Gita caused particularly severe damage, estimated by the WTO Secretariat at 38% of GDP. Both reconstruction and improving the resilience of economic and trade-related infrastructure are permanent areas of Government work. Natural disasters are estimated to inflict an annualized loss of 4.3% of GDP.

3.9. In 2020, the IMF's Climate Change Policy Assessment (CCPA) estimated that the climate resilience projects Tonga needs will cost 140% of GDP. So far, donors have committed to fund approximately half of this figure.

4.18. Tonga is the smallest of the Pacific WTO Members in terms of both population and GDP. In common with most small island developing states (SIDS), state-owned enterprises (SOEs) play an important role in the economy. There are many reasons for this. (...) Additional challenges, such as the need for economic operators to provide equally for the needs of remote populations on outer islands, even when this is not profitable, and to rebuild from frequent natural disasters, mean that SOEs are often the simplest means of achieving a complex set of objectives.

5.5. Agriculture in Tonga faces a number of long-term challenges. Climate change has already resulted in increased variability in precipitation, and higher temperatures. Consequently, the country experiences more frequent periods of drought and flooding, which in turn have led to reduced productivity in a wide range of crops. The sector will need to increase its research activity in order to breed and introduce new varieties that are more resilient to the emerging climate if current levels of productivity are to be maintained. Unfortunately, research operations have been heavily damaged by recent cyclones and the Government has not had sufficient resources to restore capacity to its former level.

5.8. The Government's strategy for forestry is outlined in the Tonga National Forest Policy (TNFP) 2009, and the Management Plan for the Forests and Tree Resources of Tonga 2017. The latter highlights the urgency of establishing a national inventory of forestry resources to improve analysis of the sustainability of current management arrangements, and to inform future policy priorities. This would require donor support to set up, but would then be maintained and updated through the Government's budget. The Government gazetted new Sandalwood Regulations in 2016, to improve sustainable management of the resource and promote new planting of sandalwood for commercial purposes. The rehabilitation of degraded foreshores in areas vulnerable to rising sea levels, storm surges, coastal erosion and salt spray will also play an important role in the country's adaptation to climate change

5.10. The Government's aim in its critical tuna fishery is to achieve a balance between revenue generated from licences sold to vessels based in Fiji and American Samoa (targeting albacore), and sustainably building local harvesting and value addition, for both domestic consumption and export, which focuses on yellowfin. The existing domestic longline fleet exports fresh tuna to the United States, Japan, Australia and New Zealand. The fishery is governed in accordance with the Tuna Management and Development Plan 2018–22, which establishes catch targets and effort controls (by limiting longline licences and purse seine fishing days). (...).

5.13. In order to improve the management of smaller scale coastal fisheries, the Ministry of Fisheries is supporting the creation of special management areas (SMAs), which give the coastal community the authority to lead in the protection of the area, prevent illegal fishing and improve sustainability. This programme has grown rapidly since 2014, and SMAs now cover around half of Tonga's coastal communities.

5.14. The Government closely follows the negotiation of a fisheries subsidies agreement at the WTO, and participates actively through the Pacific Group. Not only will the conclusion of a meaningful agreement be critical for the sustainability of the world's fisheries, but an agreement that is effective in reducing the total quantity of subsidies provided to the global fishing industry would level the playing field for small island states with substantial fisheries, improving the prospects for a sustainable fishing industry to be a driver for economic development.