Fiji Weighs PACER Plus: A Trade Deal Worth the Risk?

Fiji will not commit to the Pacific Agreement on Closer Economic Relations (PACER) Plus unless it aligns with the country’s interests. Deputy Prime Minister and Minister for Trade, Cooperatives and Small Medium Enterprises, Manoa Kamikamica, made this statement during consultations related to PACER Plus in Suva. The coalition government is currently evaluating the prospect of joining this trade and development agreement.

Despite actively participating in the PACER Plus negotiations, Fiji refrained from signing, citing insufficient flexibility and benefits that would outweigh the potential risks and costs. Kamikamica emphasized that Fiji’s engagement in these negotiations stemmed from a commitment to fostering regional cooperation and ensuring that trade agreements effectively contribute to development.

While acknowledging the necessity to enhance Pacific trade, he stressed the importance of careful examination. According to him, PACER Plus could generate jobs, stimulate economic growth, and improve livelihoods by enhancing market access and trade value. However, he pointed out that the economic landscape has shifted both domestically and internationally, necessitating a detailed review of the agreement to ascertain its alignment with Fiji’s development goals and its ability to address structural changes in the economy.

These changes include diversifying and expanding Fiji’s limited export base, strengthening supply chain resilience, and addressing the trade deficit, particularly with Australia and New Zealand. He underscored that the government’s duty is to ensure that any trade agreement pursued is fair, equitable, development-driven, and beneficial for Fiji.

It is critical to reassess whether the previous decision to remain outside PACER Plus continues to serve Fiji’s best interests. Kamikamica called for collaborative efforts to determine if PACER Plus can fulfill its intended role as a catalyst for sustainable development.

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