The government is considering the possibility of joining the Pacific Agreement on Closer Economic Relations, commonly known as PACER Plus, after the FijiFirst administration chose not to sign the agreement at that time due to various reasons.
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 initiated discussions on exploring the option of joining the agreement.
Kamikamica noted that Fiji’s participation in the PACER Plus negotiations aligns with the country’s commitment to enhancing regional cooperation and ensuring that trade agreements effectively serve as tools for development. He emphasized the challenges faced by the small and vulnerable Pacific Island economies, which necessitate a customized approach to economic growth and development.
He highlighted that Fiji’s vulnerabilities are exacerbated by factors like geographical isolation, limited market size, and susceptibility to natural disasters. “Any trade agreement we pursue must consider these challenges and offer us the means to navigate them,” he stated. PACER Plus is expected to generate jobs, promote economic growth, and improve the livelihoods of citizens by enhancing market access and reducing trade barriers.
The Deputy Prime Minister pointed out that Fiji currently has a trade deficit of $1 billion with Australia and New Zealand combined, indicating an unbalanced trade relationship with these nations. He raised concerns regarding the implications of PACER Plus on Fiji’s trade with Australia and New Zealand, questioning who would benefit from the increased trade and whether it would help reduce the trade deficit or exacerbate it.
Kamikamica also raised the issue of tariff revenue loss when liberalizing trade with Australia and New Zealand. The Ministry of Finance has estimated that the loss could reach up to $300 million, contingent on the number of items from which tariffs are eliminated and future consumption trends.
He concluded by asserting that the government has a duty to protect national interests and ensure that the benefits of any agreement are meaningful and tangible for the population.