The government is considering the possibility of joining the Pacific Agreement on Closer Economic Relations, known as PACER Plus, after the previous FijiFirst Government chose not to sign the accord due to various factors.
During the PACER Plus Consultations, Deputy Prime Minister and Minister for Trade Manoa Kamikamica stated that since the change in government, the Coalition Government has announced its intent to explore joining the agreement.
Kamikamica emphasized that Fiji’s participation in the negotiations for PACER Plus stems from a commitment to promoting regional cooperation and ensuring that trade agreements serve as genuine tools for development. He pointed out that Pacific Island economies are small and vulnerable, facing unique challenges that necessitate a customized approach to economic growth.
He noted that factors such as geographical isolation, limited market size, and susceptibility to natural disasters intensify these vulnerabilities. “Any trade agreement we enter into must address these challenges and empower us to overcome them. PACER Plus offers the potential to generate jobs, stimulate economic growth, and enhance the livelihoods of our people by improving market access and lowering trade barriers,” he said.
Kamikamica also highlighted that Fiji currently has a trade deficit of $1 billion with Australia and New Zealand combined, indicating an unbalanced trade relationship with these key partners. He raised concerns about how PACER Plus might affect Fiji’s trade dynamics with both countries, questioning whose trade would increase as a result of the agreement and whether Fiji’s trade deficit would decrease or worsen.
With significant trade occurring between Fiji, Australia, and New Zealand, Kamikamica raised another important question regarding the impact on tariff revenue following trade liberalization. He mentioned that the Ministry of Finance has estimated that the potential loss of tariff revenue could reach up to $300 million, which would vary based on the number of items for which tariffs are eliminated and future consumption patterns.
Kamikamica concluded by asserting that the government has a duty to safeguard national interests and ensure that the benefits of any trade agreement are meaningful for the people of Fiji.