ABSTRACT
This chapter begins by the development challenges of the region and of small island developing states. It surveys the issues from the perspective of the small island countries of the Pacific. The chapter examines the World Trade Organization (WTO) which has accommodated the special needs of developing countries and small economies. Although many of the region's countries are not presently members of the WTO, the WTO regime affects nonmembers indirectly as well as current and prospective members. The chapter focuses on regional trade agreements in the South Pacific, again considering attempts to address the development needs of small island countries in the region. As Small Island developing states, the Pacific island countries face particular challenges in economic development. They also suffer from a degree of inherent disadvantage in international trade, which is increasingly emphasized as a driver of development. The development challenges facing the countries include economic, political, social and environmental factors.
