PACER Plus

The PTI Network has congratulated the Pacific countries who signed the agreement earlier this month in Tonga.

Michael Greenslade, Trade & Investment Commissioner and CEO PTI New Zealand, said it’s an important agreement that will strengthen Pacific relations.

“New Zealand and Australian markets are important for the Pacific Islands, and closer trade and economic relations will have an important role in increasing collective prosperity.  The key objective of PACER Plus is to encourage economic development and promote business growth across the Pacific.”

Speaking at the signing ceremony in Nuku’alofa yesterday, Pohiva said Tonga will first conduct a readiness assessment of its trading with Australia, New Zealand and other Pacific Island Countries to ensure proper measures are put in place to determine Tonga’s readiness.

“Secondly, the anticipated impact that such an agreement will have on our economies. Thirdly, the signing of the agreement is only the beginning of this important trade journey. Government will still have to confirm details about Labour Mobility and Development Assistance.”

Nine countries from around the region, as well as Australia and New Zealand, are in Tonga to sign the PACER Plus agreement, wrapping up nearly a decade of negotiations.

The deal has been polarising with critics saying it threatens the interests of island countries, and was unbalanced towards the interests of Australia and New Zealand.

But proponents tout it as a new kind of deal that links development to trade.

Todd McClay said this would give funding to boost exports from Pacific countries, and create rules to make it easier for the region's countries to trade.

Dr Patricia Ranald, Convener of the Australian Fair Trade in Investment Network (AFTINET), said today that this is because the three largest Pacific island economies are saying there are no benefits for them.

Dr Ranald said that the text was released only two weeks ago. Pacific island, Australian and NZ community groups are calling for an independent analysis and time for proper public and parliamentary consultation about the deal.

Tongan businesses, workers` organizations and civil society organisations submitted a petition to the Prime Minister’s Office last Thursday afternoon requesting the deferment claiming the current text is detrimental to Tonga for several reasons.

The full text of the proposed deal has been made available online only a few weeks out from the planned signing ceremony to be held in Tonga on the 14th of this month.

A trade justice campaigner for the Pacific Network on Globalisation, Adam Wolfenden, said there was simply not enough time for an independent assessment of the proposed agreement.

Mr Wolfenden said the extremely complex legal document would have a massive impact on a cross section of society in the Pacific.

Representatives from all 14 participating members, including New Zealand, Australia, Cook Islands, Federated States of Micronesia, Nauru, Kiribati, Niue, Palau, Republic of Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu, will be in Nuku’alofa, Tonga to sign the agreement.

It has been challenging getting the agreement over the line, and the successful conclusion of PACER Plus negotiations in Brisbane is a landmark day for trade and the sustainable economic development of the Pacific, NZ Trade Minister Todd McClay says.

RNZ reports he helped the island countries negotiate the deal and said it should bring significant benefits.

But Dr Kessie said a key is that New Zealand and Australia meet their commitments to allocate up to 20 per cent of their Pacific aid budgets to helping the island nations develop such things as the capacity to meet international bio-security requirements.

He said this would amount to $US300 million dollars annually being allocated.

The trade arrangement among Pacific nations is due to be signed in June after negotiations were completed last week.

Edwini Kessie said the New Zealand Green Party MP Barry Coates was wrong to claim there is a lack of access.

He said the issue was the difficulty Pacific Island countries often have in establishing rigorous bio-security systems, but under the deal New Zealand and Australia were committed to help the smaller nations achieve this.

"So the statement that they don't have access to Australia for tropical fruits is not accurate," Dr Kessie said.

The veteran of the aid and development sector is critical of the PACER PLUS agreement involving New Zealand and Australia and 12 island countries that is set to be signed in June.

But missing from it are the two biggest economies among the island nations, Papua New Guinea and Fiji.

While PACER is being touted by Australia and New Zealand as a great deal for the island countries, Mr Coates said they get few benefits.

The MP said the deal also goes against the emphasis placed on regionalism by Australia and New Zealand.