The Coalition Government, through the Ministry of Trade, is engaging in national consultations with various industries and the business community as it reassesses its stance on the Pacific Agreement on Closer Economic Relations (PACER) Plus.
PACER Plus is a free trade agreement among Australia, New Zealand, and the Forum Island Countries (FICs), which came into effect in December 2020. The participating nations include Australia, Cook Islands, Kiribati, New Zealand, Niue, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu. Nauru has signed the agreement but has yet to ratify it, while Fiji, Papua New Guinea, the Federated States of Micronesia, Palau, and the Republic of the Marshall Islands took part in negotiations but did not sign.
Stakeholders are encouraged to contribute thoughtfully during these consultations to evaluate the advantages and disadvantages of the agreement for Fiji.
During the consultation held at the Civic Auditorium in Suva, Deputy Prime Minister and Minister for Trade Manoa Kamikamica emphasized the importance of ensuring that Fiji’s trade interests are well-represented. He reaffirmed that PACER Plus aims to address the unique challenges faced by Pacific island economies by facilitating enhanced trade and economic cooperation.
Fiji participated in PACER Plus negotiations but ultimately opted not to sign the agreement due to various considerations. Following the change in government, the Coalition started exploring the possibility of rejoining the agreement last year, focusing initially on the Indo-Pacific Economic Framework for Prosperity (IPEF).
This week’s consultations are intended to reassess Fiji’s position on PACER Plus and gather insights to determine if joining serves the country’s national interests and development goals. Kamikamica stated that the government would not proceed if it does not benefit Fiji.
He highlighted the particular vulnerabilities of Pacific island economies, such as geographical isolation, limited market size, and susceptibility to natural disasters, which must be considered in any trade agreement. PACER Plus was presented as a mechanism for fostering sustainable growth through trade.
The Deputy Prime Minister noted that trade between Australia, New Zealand, and the Pacific island countries is significant, prompting the need for careful evaluation of how PACER Plus might affect Fiji’s trade relations. He pointed out that Fiji currently faces a substantial trade deficit with these larger trading partners.
Kamikamica reiterated the importance of ensuring that any trade agreement is equitable, beneficial, and prioritizes national interests. He invited participants to share their thoughts on how PACER Plus can support Fiji’s long-term development, diversify the economy, create jobs, and enhance resilience against climate change.
The consultations aim to determine whether PACER Plus can effectively contribute to Fiji’s sustainable development objectives.