The government is considering the possibility of joining the Pacific Agreement on Closer Economic Relations, commonly known as PACER Plus, after the FijiFirst Government opted not to sign the agreement previously for various reasons.
During the PACER Plus Consultations, Deputy Prime Minister and Minister for Trade Manoa Kamikamica stated that following the change in government, the Coalition Government has begun to explore the option of joining the agreement.
Kamikamica emphasized that Fiji’s engagement in the PACER Plus negotiations is motivated by a commitment to enhance regional cooperation and to ensure that trade agreements genuinely facilitate development. He pointed out that the small and vulnerable economies of the Pacific Islands face unique challenges that necessitate a customized approach to economic growth and development.
He noted that vulnerabilities are exacerbated by factors such as geographical isolation, limited market size, and susceptibility to natural disasters.
“Any trade agreement we pursue must address these challenges and equip us with the tools to overcome them. PACER Plus is expected to generate jobs, stimulate economic growth, and enhance the livelihoods of our citizens by improving market access and lowering trade barriers,” Kamikamica stated.
The Deputy Prime Minister highlighted that Fiji currently holds a trade deficit of $1 billion with Australia and New Zealand combined, which indicates an imbalance in trade with these two countries.
He raised concerns about the implications of PACER Plus on Fiji’s trade dynamics, specifically questioning whether it would enhance Fiji’s exports or predominantly benefit exports from Australia and New Zealand, thereby potentially worsening Fiji’s trade deficit.
Kamikamica also questioned what would happen to tariff revenue if trade with Australia and New Zealand is liberalized. He cited a recent suggestion from the Ministry of Finance indicating that the loss of tariff revenue could amount to as much as $300 million, depending on what tariffs are eliminated and future consumption trends.
He reiterated the government’s obligation to safeguard national interests and ensure that any agreement delivers genuine benefits to the people.