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Fiji’s Bold Decision: Rejecting PACER Plus Explained

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Fiji’s Permanent Secretary for Trade, Shaheen Ali, announced that the nation opted not to endorse the PACER Plus Agreement, which was established by Pacific Island leaders alongside Australia and New Zealand in Tonga in 2017. He indicated that the agreement lacked sufficient flexibility and benefits to mitigate the potential risks and costs for Fiji.

During the PACER Plus Plenary Session, Ali explained that the discussions leading to the PACER Plus negotiations began in 2008 when Fiji and Papua New Guinea preliminarily agreed to the Interim Economic Partnership Agreement with the European Union, which triggered the ‘Most Favoured Nation’ (MFN) clause in PACER. Fiji joined the PACER Plus negotiations in 2014 after being suspended from the Forum.

Ali emphasized that despite Fiji’s late entry, the country made significant contributions to the negotiations, ensuring that PACER Plus included various flexibilities that may not have been present without Fiji’s participation.

The Ministry of Trade has announced that Professor Chris Noonan from the University of Auckland will spearhead Fiji’s negotiations to re-enter PACER Plus. Ali noted that Professor Noonan played a critical role in the Fiji team during discussions related to the Indo-Pacific Economic Framework (IPEF), which is a trade agreement that also involves Australia, New Zealand, and Fiji.

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