The government is actively considering the possibility of joining the Pacific Agreement on Closer Economic Relations, known as PACER Plus, following the decision by the previous FijiFirst Government not to sign the agreement based on various factors.
During the PACER Plus Consultations, Deputy Prime Minister and Minister for Trade Manoa Kamikamica announced that since the change in government, the new Coalition Government is exploring this opportunity. He emphasized that Fiji’s participation in PACER Plus negotiations stems from a commitment to regional cooperation and ensuring that trade agreements are genuinely effective in promoting development.
Kamikamica pointed out the challenges faced by small and vulnerable Pacific Island economies, including geographical isolation, limited market size, and susceptibility to natural disasters, which necessitate a tailored approach to economic growth. He noted that any trade agreement must address these vulnerabilities and provide tools for overcoming them.
He mentioned that PACER Plus is aimed at creating jobs, stimulating economic growth, and improving the livelihoods of the population by enhancing market access and lowering trade barriers. Kamikamica also highlighted the $1 billion trade deficit Fiji has with Australia and New Zealand, indicating an imbalance in trade that poses several risks.
The Deputy Prime Minister raised critical questions regarding the potential impact of PACER Plus on Fiji’s trade with Australia and New Zealand, particularly whether it would favor Fiji’s exports or exacerbate the existing trade deficit. He also questioned the implications of tariff revenue loss due to trade liberalization with these key trading partners, suggesting that the Ministry of Finance estimates this loss could reach up to $300 million, depending on the items for which tariffs are eliminated and future consumption trends.
Kamikamica reiterated the government’s responsibility to safeguard national interests and ensure that any agreement substantially benefits the people of Fiji.