I would like first to welcome the Delegation of the Sultanate of Brunei Darussalam, led by Her Excellency, Dr May Ariffin[1], Permanent Secretary of Economy, Trade and Industry.  I would also like to thank the Discussant, H.E. Dr Mzukisi Qobo of South Africa, for his introductory remarks.

Brunei’s economy continues to be characterised by a strong reliance on the oil and gas sector, which remains a major driver of GDP, export earnings, and state revenues. While notable progress has been made in diversifying its economy (the share of non-oil-and-gas sector in real GDP has increased from 20% in 2003 to 53.6% in 2023), the European Union wishes to emphasize that maintaining an open trade and investment policy, as well as a business-friendly climate for foreign investors are essential for sustained economic diversification.

We are therefore following with great interest Brunei's efforts to implement its economic transformation, as outlined in "Vision 2035", and its initiatives to foster private sector growth and attract foreign direct investment, particularly in non-oil sectors.

Brunei’s commitment to the multilateral trading system is commendable, as reflected in its ratification of the phase 1 of the WTO Agreement on Fisheries Subsidies and its active participation in regional trade agreements.

Furthermore, the European Union positively acknowledges that Brunei has increased the share of duty-free lines from around 76% in 2014 to 92.5% in 2024 and has reduced its average applied Most-Favoured-Nation (MFN) Tariff from 1.8% in 2014 to 0.4% in 2024, since the last Trade Policy Review. Nonetheless, the WTO compatibility of certain measures, including import restrictions for sugar, timber, precious stones and metals, as well as export restrictions, remain an area of concern. Further transparency and stakeholder consultations in trade policy formulation would, in our view, strengthen Brunei’s alignment with WTO principles and foster a more conducive environment for business.

Looking ahead, we encourage Brunei to continue pursuing reforms that enhance its trade facilitation framework, simplify customs procedures, and expand opportunities for Micro, Small and Medium Enterprises. Additionally, we support the government in maintaining momentum on its climate commitments, including the implementation of a carbon pricing mechanism, which will be crucial in supporting Brunei’s transition to a sustainable, low-carbon economy.

In conclusion, we commend Brunei’s efforts to advance its economic development, while remaining an engaged and constructive member of the WTO.  The European Union is looking toward continuing the dialogue and cooperation in achieving shared goals of economic resilience and sustainable growth, both on the multilateral and region-to-region level, with Brunei serving as the EU’s ASEAN country coordinator for 2024-2027.

The European Union wishes the Brunei delegation every success in this 4^th Trade Policy Review. Thank you.

[1] Full name and title: Dr Hajah May Fa'ezah binti Haji Ahmad Ariffin, Permanent Secretary (Economy, Trade, and Industry), Ministry of Finance and Economy of Brunei Darussalam