The government is currently considering the possibility of joining the Pacific Agreement on Closer Economic Relations, known as PACER Plus, after the previous FijiFirst Government opted not to sign the agreement due to various factors.
During the PACER Plus Consultations, Deputy Prime Minister and Minister for Trade Manoa Kamikamica announced that since the shift in government, the Coalition Government has begun exploring the potential for Fiji’s participation in the agreement.
Kamikamica emphasized that Fiji’s engagement in the PACER Plus negotiations is rooted in a commitment to promoting regional cooperation and ensuring that trade agreements effectively serve developmental goals.
He pointed out that Pacific Island economies are small and face vulnerabilities that necessitate a customized approach to economic growth and development. These vulnerabilities are exacerbated by geographical isolation, limited market sizes, and susceptibility to natural disasters.
“Any trade agreement we enter into must address these challenges and provide solutions,” he stated. PACER Plus is expected to generate jobs, stimulate economic growth, and enhance the livelihoods of citizens by improving market access and lowering trade barriers.
The Deputy Prime Minister noted that Fiji currently has a trade deficit of $1 billion with Australia and New Zealand combined, highlighting an imbalance in trade with these significant partners.
“This raises important questions: How will PACER Plus affect Fiji’s trade relations with Australia and New Zealand?” he asked. “If it boosts trade, whose exports will benefit? Will Fiji’s exports increase, thereby reducing the trade deficit, or will exports from Australia and New Zealand grow, potentially worsening our trade situation?”
Kamikamica also raised concerns about the implications of tariff liberalization on tariff revenue. He cited a recent Ministry of Finance estimate indicating that tariff revenue losses could be as high as $300 million, depending on the number of items with removed tariffs and future consumption patterns for these goods.
He reiterated that the government has a duty to safeguard national interests and ensure that any benefits derived from such agreements are tangible for the population.