The government is considering the possibility of joining the Pacific Agreement on Closer Economic Relations, known as PACER Plus, after the previous FijiFirst administration opted not to sign the agreement due to various factors.
During the PACER Plus Consultations, Deputy Prime Minister and Minister for Trade Manoa Kamikamica announced that the Coalition Government is now exploring the opportunity to become a part of this agreement. He emphasized that Fiji’s participation in PACER Plus negotiations reflects its commitment to promoting regional cooperation and ensuring that trade agreements function as tools for development.
Kamikamica noted that the Pacific Island economies are small and vulnerable, facing unique challenges that necessitate a customized approach to economic growth and development. He highlighted that challenges such as geographical isolation, limited market size, and susceptibility to natural disasters intensify these vulnerabilities.
He stated, “Any trade agreement we pursue must address these challenges and provide ways to overcome them.” Kamikamica explained that PACER Plus has the potential to create jobs, stimulate economic growth, and enhance the livelihoods of citizens by improving 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 imbalance in trade with these key partners. He raised critical questions regarding the impact of PACER Plus on Fiji’s trade relations with Australia and New Zealand, asking whether it would enhance Fiji’s exports or primarily benefit the exports of these neighboring countries, potentially worsening Fiji’s trade deficit.
Kamikamica also questioned the implications of liberalizing trade on tariff revenue, stating that the Ministry of Finance estimated a potential loss of up to $300 million in tariff revenue. This figure would fluctuate based on the number of products for which tariffs are lifted and future consumption patterns within the country.
He concluded by underscoring the government’s obligation to safeguard national interests and ensure that any agreements provide meaningful benefits to the people of Fiji.