PACER is an agreement between Australia, New Zealand and 14 Pacific Island Nations. It was endorsed at the meeting of the Pacific Islands Forum in Nauru in 2001.

PACER provided for an initial trade agreement between Pacific Island nations and promised to initiate negotiations for a free trade agreement with Australia and New Zealand by 2011, unless triggered earlier. The signing of interim agreements between the European Union, Fiji and Papua New Guinea has triggered these new PACER negotiations.

In June 2007, the Pacific trade ministers meeting in Port Vila began discussions on moving to a more comprehensive free trade agreement, which has been dubbed "PACER-Plus".

Across the Pacific there are concerns about what the impacts of a PACER agreement will have on the communities. 

The Nathans Associates report commissioned by the Pacific Islands Forum Secretariat concluded that Fiji, PNG, Samoa, and Vanuatu stand to lose up to US$10 million from tariff cuts on Australian and New Zealand imports. The International Monetary Fund has concluded that developing countries that implement Value Added Taxes only collect 30% of the revenue previously received through tariffs. This loss of government revenue undermines the ability of governments to fund essential services and infrastructure, particularly for island nations like those in the Pacific.

The communities in the Pacific however are prepared to challenge the PACER agenda to demand that their concerns are not ignored and that their development is decided by them. In the lead up to the 2009 Forum Trade Ministers Meeting, 32 organisations signed onto a statement outlining their concerns about PACER.

UPDATE: August 2010 - PACER-Plus - Call to Suspend Talks

Pacific civil society has called for the PACER-Plus talks to be suspended pending promised national consultations being undertaken; funding and adequate staffing for the office of the Chief Trade Advisor; an easing of the impacts and an evaluation of the of the global financial crisis; alternative trade options are examined; there is a guarantee to exclude comprehensive services and investment chapters; there is a delinking of the labour mobility program; adequate funding and training is provided for capacity building of local trade officials and key stakeholders; a human rights and gender analysis is undertaken and there is active involvement from civil society as promised by the leaders. Follow this link for a copy of the Pacific Statement.

AFTINET, along with many civil society organisations in Australia and New Zealand have supported this call from the Pacific to suspend the talks. Follow this link for a copy of the statement.

For more information and to view AFTINET submissions see our PACER resources, or see the following organisations working on the issue of trade in the Pacific Islands.

Pacific Network on Globalisation

Oxfam NZ

Aid/Watch