Make Trade Engine
of Economic Growth

Department of Trade

Tuvalu, a small Pacific Island country (estimated population is 11,000 and a total land area of 26 square kilometres) faces all constraints of smallness, remoteness, vulnerability to climate change, and natural disasters. The poor quality of soil and supply of freshwater limit trade opportunities for Tuvalu while sea level rise and increasing intensity and frequency of cyclones tend to reduce the sustainability of long-term investments. The economic potential is constrained by the lack of natural resources; small domestic market and underdeveloped private sector; geographical fragmentation across nine islands and atolls; difficult and expensive access to major international markets; and high inter-island transport costs.

Tuvalu is highly dependent on imports, the bulk of which consists of foods, fuel, building materials, medicine, medical equipment, and most consumer products including motor vehicles, appliances, and clothing. In terms of export, Tuvalu has very few items to export given its limited resource and other challenges mentioned above. Efforts were taken place for Tuvalu to be an exporting country but were not sustained due to a lack of capacity in the private sector and the department to carry out the required task to execute the required activities.