Prime Minister Samuela ‘Akilisi Pohiva says the Tongan Government will commit to steps to prepare for the ratification of the Pacific Agreement on Closer Economic Relations (PACER Plus).
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.”
He acknowledged the financial commitments of the Australian and New Zealand Government to the Pacific states which enabled the “necessary legislative changes and the modernization of customs and clearing systems to facilitate trade.”
Tonga and nine other countries signed PACER Plus yesterday.
The PACER Plus is a regional free trade agreement between the member countries of the Pacific Islands Forum.
The negotiations on PACER Plus began in 2009 and concluded on April 20, 2017 in Brisbane, Australia.
Countries that signed the agreement included Australia, New Zealand, Samoa, Solomon Islands, Nauru, Tuvalu, Kiribati, Cook Islands, Niue and Tonga.
Tonga Minister for Commerce, Consumer, Trade, Innovation and Labour, Pohiva Tu’i’onetoa said the signing ceremony marks a milestone in the region’s growth and integration.
“After more than a decade and a half, we can finally celebrate the results of a very grueling process. As a member of the government, faced with many trade challenges, this ceremony promises great relief when imagining the kind of potential that it is capable of ushering in,” he said.
Minister Tu’i’onetoa said moving on will embark on discussions about ratification.
“We intend to engage in constructive conversations with all our stakeholders. After all the government did not negotiate this agreement for itself but rather for our people.”
He said that trade brings diverse nations together and he hoped that the agreement will become a vital mechanism in the region that will help deepen regional integration.
The government's decision will disappoint the Tonga Public Service Association and a group of businesses and the Non-Government Organisations that submitted a petition to the Prime Minister's Office to defer the signing to allow for the text to be re-visited.
The petitioners said the agreement in its current form is detrimental to businesses, workers and young entrepreneurs in Tonga.
New Zealand’s Minister of Trade and State Owned Enterprises Todd McClay said, “PACER Plus is not about competing or about winners and losers. It is about shared prosperity and encouraging economic development in the Pacific nations. It is a win-win for all of our countries. It is a world class trade and development agreement.”
He stated PACER Plus will give signatory states greater capacity to produce goods and services which can be sold in international markets, using trade as the engine of economic growth and sustainable development.
Trade Ministers and Officials from the region, Ministers of the Crown, Government CEO’s and guests also attended the ceremony.
Photo from Twitter/Andrew Ford: PACER Plus sigining ceremony