The government is considering the possibility of joining the Pacific Agreement on Closer Economic Relations, commonly known as PACER Plus, after the previous FijiFirst Government chose not to sign the agreement for various reasons.
During the PACER Plus Consultations, Deputy Prime Minister and Minister for Trade Manoa Kamikamica stated that the Coalition Government, following its assumption of power, has announced its intention to explore this agreement. Kamikamica emphasized that Fiji’s participation in PACER Plus negotiations is motivated by a commitment to bolster regional cooperation and to ensure that trade agreements function effectively as tools for development.
He pointed out that the Pacific Island economies are small and susceptible, facing unique challenges that necessitate a customized approach for economic advancement and growth. He noted that these vulnerabilities are exacerbated by geographical isolation, limited market sizes, and exposure to natural disasters.
Kamikamica stressed that any trade agreement Fiji enters must address these challenges and provide solutions. He highlighted that PACER Plus holds the potential to create jobs, stimulate economic growth, and enhance the livelihoods of Fijians by improving market access and lowering trade barriers.
Highlighting the economic situation, the Deputy Prime Minister revealed that Fiji has a trade deficit of $1 billion with Australia and New Zealand combined, indicating a significant imbalance in trade with these key partners. He raised important questions regarding PACER Plus’s potential impact on Fiji’s trade with Australia and New Zealand, asking whether the agreement would increase Fiji’s exports or exacerbate the existing trade deficit.
Additionally, he questioned the implications of tariff revenue loss should trade liberalization occur with these nations. The Ministry of Finance suggested that potential tariffs lost could amount to as much as $300 million, depending on the number of items subject to tariff removal and changes in consumption patterns.
Kamikamica reiterated that the government has a duty to safeguard national interests and ensure that any trade agreement delivers real benefits to the people of Fiji.