The problem in context

Most small economies find it difficult to operate alone in the global economy, and less developed economies face particular hurdles in their quest for prosperity. The global trading environment is becoming increasingly integrated, and the last decade has seen a number of regional groupings form to capitalize on the benefits of more efficient use of resources and economies of scale. While this integration has been most evident in the major economies of Europe (the European Union) and North America (the North American Free Trade Agreement), similar moves towards economic integration are being explored in Asia and South and Central America, in a sign that many countries are recognizing the benefits of a shared approach to trade and development. As the world's major economies move towards greater trade and economic integration, many smaller, less developed economies are at risk of being left behind. In recognition of this, the World Trade Organization is paying particular attention to the needs of smaller economies.

The economies of the Pacific island nations are among the most disadvantaged in the world today. These nations, composed of islands that are often little more than specks of land in the vast expanse of the Pacific Ocean, are at the forefront of concerns about countries being left behind in the current tide of global economic development. Of the three WTO member nations in the South Pacific (Fiji, Papua New Guinea and the Solomon Islands), Papua New Guinea is by far the largest.