Solomon Islands

The Solomon Islands benefit from the EU's "Everything but Arms" (EBA) scheme for least developed countries. The World Bank classifies the Solomon Islands as a lower-middle income country with the per-capita income standing at $ 2.210 (2022). Total imports from the Solomon Islands amounted to about €85 million in 2022. The Solomon Islands make considerable use of their preferential access to the European market, about 83% of total imports make use of EBA preferences.

What is the EBA?

The “Everything but Arms”(EBA) scheme is a permanent arrangement covering Least Developed Countries (LDC’s) as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products (7200 products in total) originating in LDC’s except for arms and ammunition. Different from the Standard GSP and GSP+, LDC’s are not excluded from the scheme if they benefit from other preferential arrangements.

Solomon Islands flag

At a glance: EBA beneficiaries' preferential imports to the EU

group

724,27 K

Population

account_balance
Parliamentary Democracy under a Constitutional Monarchy

Government

trending_up

-4.10%

GDP Growth

equalizer

4.00%

Inflation

money

$ 1,60 B

GDP

75 v

Freedomhouse index

- -

ITUC Global Rights Index

35 ^

Environmental Performance Index

Facts about the Solomon Islands' economy

Island Economy

The Solomon Islands are a small island economy in the South Pacific and consist of six main islands. Despite land is generally scarce, more than 70% of the population are dependent on agriculture and subsistence farming.

Export Products

By far the most important export product for the Solomon Islands is tropical wood, followed by prepared/preserved or frozen fish and agricultural products like palm and coconut oil and cocoa beans. Another important good for export are aluminium ores, mostly for the Asian market.

Trade Partners

China is by far the most important trading partner for Solomon Islands and accounts for a share of 40% of overall trade. Almost half of exports from the Solomon Islands go to the Chinese market. Chinese products account for the largest share of imports (34.9%), followed by Singapore (14.6%) and Malaysia (10.6%).

Economic Structure

The service sector is the mainstay of the economy and employs the majority of the population.

Usage of EBA Preferences

Over 80%% of EU imports from Solomon Islands make use of the preferences granted by the EBA. Similarly, the preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, is very high and currently stands at 83.4%.

Trade with the EU

Total trade with the EU summed up to € 93 million in 2022. With a share of 7.8%, the EU only plays a minor role in the trade relations of the Solomon Islands. The EU is, however, the second most important export market with a share of 18.5%.

Solomon Islands and the EU (2022)

Imports from the Solomon Islands by product section

Imports from Solomon Islands over time (in € m)

SOLOMON ISLANDS AND THE EU’s GSP

Economic Impact

96%

Almost all exports of the Solomon Islands to the European market are eligible for preferences granted by the EU's EBA.

83.40%

With a preference utilisation rate of 83%, the Solomon Islands make considerable use of EBA preferences.

Preference utilisation and export diversification

Solomon Islands' imports to the EU

Preference Utilisation vs. total eligible imports

Despite the Solomon Islands only utilise EBA preferences for a very limited product range, they belong to the group of highest preference users across all three GSP arrangements. Until 2019, the preference utilisation rate of the Solomon Islands was consistently above 98%., until it dropped by over 15% and stood at 83.4% in 2022. The utilisation is particularly high for the two most prominent product sections, preparations of meat and fish and vegetable and animal fats and oils. Despite eligibility, preferences remain underutilised for a number of other product sections, including for example metals and instruments.

The largest product sections under EBA

The utilisation of concessions granted by the EBA is limited to three product sections- preparations of fish, fish products, and vegetable oils.

SUSTAINABLE DEVELOPMENT

As a beneficiary of the EBA, the Solomon Islands are not obligated to ratify any conventions to be able to benefit from preferential access to the European market. Nonetheless, the Solomon Islands have ratified 4 out of 7 fundamental UN conventions on human rights as well as all 8 core ILO labour rights conventions. Additionally, the Solomon Islands have ratified 7 environmental protection conventions and 2 conventions on good governance.

Core international conventions on human rights and labour standards

Ratified

  • International Convention on the Elimination of All Forms of Racial Discrimination (1969)
  • International Covenant on Economic Social and Cultural Rights (1976)
  • Convention on the Elimination of All Forms of Discrimination Against Women (1981)
  • Convention on the Rights of the Child (1990)
  • Convention concerning Forced or Compulsory Labour, No 29 (1930)
  • Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
  • Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
  • Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
  • Convention concerning the Abolition of Forced Labour, No 105 (1957)
  • Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
  • Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
  • Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)

Not Ratified

  • International Covenant on Civil and Political Rights (1976)
  • Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
  • Convention on the Prevention and Punishment of the Crime of Genocide (1948)

Additional Conventions

  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
  • Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
  • Convention on Biological Diversity (1992)
  • The United Nations Framework Convention on Climate Change (1992)
  • Cartagena Protocol on Biosafety (2000)
  • Stockholm Convention on persistent Organic Pollutants (2001)
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
  • United Nations Single Convention on Narcotic Drugs (1961)
  • United Nations Convention against Corruption (2004)

EU-Solomon Islands Bilateral Development Assistance

DG INTPA

Access all info about EU-Pacific Islands Countries relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/pacific-islands-countries_en

Opportunities in Solomon Islands

  • The Solomon Islands is looking to attract investments in the key sectors such as agriculture, mining, fisheries, tourism, and other services
  • New investors are granted government incentives

Contact points