Fiji’s Trade Dilemma: Rejecting PACER Plus for Greater Gains?

Fiji’s Permanent Secretary for Trade, Shaheen Ali, announced that the nation has opted not to participate in the PACER Plus Agreement, which was established by Pacific Island leaders along with Australia and New Zealand in Tonga in 2017. Ali explained that Fiji found the agreement lacking in flexibility and benefits to adequately counterbalance the potential risks and costs involved.

During his address at the PACER Plus Plenary Session, Ali referred to the 2008 signing of the Interim Economic Partnership Agreement with the EU by Fiji and Papua New Guinea, which he stated activated the ‘Most Favoured Nation’ (MFN) clause within PACER. This initiated the PACER Plus negotiations, which took place from 2009 to 2017, with Fiji joining in 2014 after its suspension from the Forum.

Ali emphasized that despite Fiji’s later involvement, the country played a constructive role in the negotiations, which led to the inclusion of various flexibilities in the PACER Plus Agreement that may not have been achieved without Fiji’s participation.

Furthermore, the Ministry of Trade revealed that Professor Chris Noonan from the University of Auckland will lead Fiji’s efforts to re-enter PACER Plus. Ali noted that Professor Noonan was a crucial member of the Fijian delegation during the negotiations for the Indo-Pacific Economic Framework (IPEF), a trade agreement that also involves Australia, New Zealand, and Fiji.

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