Solomon Islands

As a least-developed country (LDC), the Solomon Islands are a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. The World Bank classifies the Solomon Islands as a lower middle-income economy with a per-capita income of $2,042 in 2023. Total EU imports from the Solomon Islands amounted to about €99 million in 2023, and preferential imports to €45 million.

What is the EBA?

The EBA arrangement covers all LDCs as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products originating in LDCs except for arms and ammunition. Unlike beneficiaries of the Standard GSP and GSP+, LDCs are not excluded from the scheme if they benefit from other preferential arrangements or agreements with the EU.

At a glance: EU preferential imports from EBA beneficiary countries (2023, € million)

group

0.8M (2023)

Population

account_balance

Parliamentary Democracy under a Constitutional Monarchy

Government

trending_up

3.1% (2023)

GDP Growth

equalizer

5.9% (2023)

Inflation

money

$ 1.6B (2023)

GDP

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, accounting for a share of 44% of overall trade in 2023, followed by Australia (12%) and the EU (9%). Almost half of all exports from the Solomon Islands go to the Chinese market, with the EU ranked second (21%). Chinese products account for the largest share of imports (42%), followed by Australia and Singapore (13% each).

Economic Structure

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

Usage of EBA Preferences

In 2023, 44% of the EU's total imports from the Solomon Islands made use of the EBA preferences. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, stood at 46%, a sharp drop from the 86% in 2022.

Trade with the EU

Total trade with the EU summed up to €85 million in 2023. With a share of 9%, the EU is the third most important trading of the Solomon Islands, and is especially important as an export destination.

Solomon Islands and the EU

Imports from the Solomon Islands by product section (2023, € million)

Imports from Solomon Islands over time (€ million)

SOLOMON ISLANDS AND THE EU GSP

Economic Impact

100%

Almost all exports of the Solomon Islands to the EU were eligible for EBA preferences in 2023.

46%

Solomon Islands' preference utilisation rate in 2023.

61%

Share of zero-duty imports from the Solomon Islands.

Preference utilisation and export diversification

EU imports from the Solomon Islands (€ million)

Preference utilisation (%) vs. total eligible imports (in € million)

Almost all EU imports from the Solomon Islands are eligible for EBA preferences. Eligible imports have shown a clearly positive trend over the years, reaching an all-time high of €99 million in 2023. Although the Solomon Islands utilise EBA preferences only for a very limited product range, they belonged to the group of highest preference users across all three GSP arrangements until 2020. Since then, preference utilisation has dropped strongly, to 46% in 2023. The utilisation is particularly high (close to 100%) for the second most prominent product section, vegetable and animal fats and oils, but decreased strongly for preparations of meat and fish, from 81% in 2022 to 25% in 2023.

The largest product sections under EBA (€ million, 2023)

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 EU 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 Cooperation

DG INTPA

Access all info about EU-Pacific Islands Countries relations on the International Partnerships website.