The Coalition Government, through the Ministry of Trade, is conducting national consultations with industry representatives and the business community to reassess its stance on the Pacific Agreement on Closer Economic Relations (PACER) Plus. This international treaty, which establishes a free trade agreement among Australia, New Zealand, and Forum Island Countries (FICs), came into effect in December 2020. The parties involved include Australia, Cook Islands, Kiribati, New Zealand, Niue, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu, while Nauru has signed but not ratified the agreement. Fiji, Papua New Guinea, the Federated States of Micronesia, Palau, and the Republic of the Marshall Islands participated in negotiations but did not sign.
Stakeholders are encouraged to engage thoughtfully in these consultations, considering the potential advantages and disadvantages of PACER Plus for Fiji. Deputy Prime Minister and Minister for Trade Manoa Kamikamica addressed participants at a consultation event held at the Civic Auditorium in Suva, stating that Fiji’s trade interests are well-represented. He emphasized that PACER Plus was designed to tackle the unique challenges faced by Pacific island economies, allowing for enhanced trade and economic cooperation.
Despite initially opting not to sign the agreement, the Coalition Government has signaled a willingness to explore joining PACER Plus. Kamikamica noted that last year’s focus was on the Indo-Pacific Economic Framework for Prosperity (IPEF), and now it is the right time to evaluate PACER Plus once again. He stressed that any decision to join must align with Fiji’s national interests and development goals.
Kamikamica outlined the need for careful analysis of the PACER Plus framework to ensure it meets Fiji’s requirements given the changing economic landscape both domestically and internationally. The Deputy Prime Minister highlighted Fiji’s trade deficit with Australia and New Zealand, exceeding $1 billion, as a significant concern. He posed critical questions regarding the potential impacts of PACER Plus on Fiji’s trade balance, tariff revenues, and overall economic resilience.
The ongoing consultations aim to gather insights from stakeholders about how PACER Plus can contribute to Fiji’s long-term development, diversify its economy, create jobs, and provide support against climate change. Kamikamica concluded by emphasizing the importance of collectively determining whether PACER Plus can serve as a sustainable development tool for Fiji.