PICTA is a Free Trade Agreement among the Forum Island Countries (FICs) that excludes Australia and New Zealand. Samoa signed onto PICTA on the 18th August 2001, and ratified on 10th October of the same year. In 2003 as a reflection of commitment to encourage intra-regional trade, and to enhance the private sector investment environment and to reduce the burden on business of complying with tax laws, the government of Samoa introduced a series of VAGST and Income Tax reforms. These included the VAGST exemption threshold level for small businesses and the increase of the VAGST from 10% to 12.5%.

Trading under PICTA was initially expected to commence on 01 January 2003, but due to the delays in the implementation of the Agreement by the Forum Island Countries (FICs), the revised date of commencement of PICTA trading was extended to 01 January 2007, as endorsed by the Pacific ACP Trade Ministers in their meeting in June 2006. The Leaders at the Thirty-Seventh Pacific Islands Forum held in October 2006 also emphasized the need for the “Members to speedily conclude the domestic arrangements required for them to trade under PICTA”. Currently, only six countries, Samoa, Vanuatu, Cook Islands, Niue, Fiji have put in place the necessary national legislation to implement PICTA.

Samoa has been one of the countries at the fore-front at pushing this process forward. Indeed, as of 16 July 2007, Samoa, together with two other Island countries were among the first to announce that the necessary arrangements were in place to allow for PICTA trading to commence from 01 January 2007 in these countries. The current status on PICTA, parties is reflected in the Table below:

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