The Fijian government is considering joining the Pacific Agreement on Closer Economic Relations, commonly referred to as PACER Plus, following the previous administration’s decision not to sign the agreement for various reasons.
During the PACER Plus Consultations, Deputy Prime Minister and Minister for Trade Manoa Kamikamica stated that since the new Coalition Government took office, they have begun exploring the potential to join the agreement. Kamikamica emphasized that Fiji’s participation in PACER Plus negotiations stems from a commitment to regional cooperation and ensuring that trade agreements facilitate genuine development.
He pointed out that Pacific Island economies are small and vulnerable, facing unique challenges that require a customized approach to economic growth and development. According to Kamikamica, these vulnerabilities are heightened by geographical isolation, limited market sizes, and susceptibility to natural disasters.
“Any trade agreement we pursue must address these challenges and furnish us with the means to tackle them,” he said. “PACER Plus is expected to foster job creation, stimulate economic growth, and enhance the livelihoods of our citizens through improved market access and the reduction of trade barriers.”
Kamikamica also remarked on Fiji’s significant trade deficit of $1 billion with Australia and New Zealand combined, noting that this imbalance poses considerable risks. With Australia and New Zealand being among Fiji’s primary trading partners, he raised the question of how PACER Plus would affect Fiji’s trade dynamics with these countries.
“If PACER Plus boosts trade, whose trade will it enhance? Will it be Fiji’s exports? Will the trade deficit decrease? Or will it lead to an increase in exports from Australia and New Zealand, thereby widening Fiji’s trade deficit?” he asked.
Another crucial concern raised by Kamikamica is the impact of trade liberalization on tariff revenues from Australia and New Zealand. The Ministry of Finance recently indicated that the potential loss of tariff revenue could reach up to $300 million, contingent on the number of tariff-free items and future consumption trends of those products.
Kamikamica concluded by asserting that the government has a responsibility to safeguard national interests and ensure that the benefits derived from any agreement are significant for the people of Fiji.