Brunei Darussalam

“Trade Policy Reviews” analyse the trade policies and practices of each member of the WTO. The reviews consist of three parts: an independent report by the WTO Secretariat, a report by the government, and the concluding remarks by the Chair of the WTO’s Trade Policy Review Body. The opening section - “key trade facts” - provides a visual overview of the WTO member's major exports/imports, main export destinations, origins for its imports and other key data. This edition looks into the trade practices of Brunei Darussalam.

The second Trade Policy Review of Brunei Darussalam was held on 25 and 27 February 2008. The Chairperson (H.E. Mr. Yonov Frederick Agah) welcomed the Brunei delegation, led by Mr. Dato Lim Jock Hoi (Permanent Secretary, Ministry of Foreign Affairs and Trade), and which included Her Royal Highness Princess Muta-Wakillah Bolkiah and H.E. Mr. Alaihuddin Taha, as well as the discussant H.E. Mrs. Marie-Claire Swärd Capra (Sweden). As usual, the discussant would speak in her personal capacity and not as a country representative. In accordance with established procedures, the discussant had provided in advance outlines of the main issues she intended to raise (document WT/TPR/D/171).

Brunei Darussalam is a small, relatively open economy in which trade and foreign direct investment play vital roles. With one of Asia’s highest per capita incomes,of US$30,000, Brunei owes its prosperity mainly to its abundant petroleum (oil and natural gas) resources, whose share of GDP grew from 53% in 2002 to 69% in 2006, and whose share of exports rose from 88% to 96% during the same period, largely due to the sharp rise in oil and gas prices. Nonetheless, between 2002 and 2006, the economy grew at a rather modest annual average real rate of 2.5%, which is insufficient to generate enough jobs for Brunei’s growing labour force. As a result, official estimates put unemployment at some 4% in 2006, a cause for concern among Bruneians. Overall, inflation has remained subdued at around 1%, generally moving in line with price trends in Singapore because of the currency peg to the Singapore dollar. Inflation is somewhat repressed, however, by the price controls and subsidies with respect to essential food items and petrol.

The Trade Policy Review Mechanism (TPRM) was first established on a trial basis by the GATT contracting parties in April 1989. The Mechanism became a permanent feature of the World Trade Organization under the Marrakesh Agreement which established the WTO in January 1995.

The Trade Policy Review Mechanism (TPRM) was first established on a trial basis by the GATT CONTRACTING PARTIES in April 1989. The Mechanism became a permanent feature of the World Trade Organization under the Marrakesh Agreement which established the WTO in January 1995.