Pacific Islands Trade Agreement

Pacific Agreement on Closer Economic Relations (PACER)

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.

Our PACER-Plus Leaflet was updated in 2011. Follow this link to download a copy.


For more information and to view AFTINET submissions see our PACER resources, or follow the links at the bottom of this page to organisations working on the issue of trade in the Pacific Islands.

To view Media Coverage of the Campaign follow this link.


Brisbane negotiating Round – 26th to 28th March 2012.

On 26th March 2012 the Australian Government will be hosting the second Non-State Actors (NSA) meeting on PACER-Plus. This meeting is meant to be the premier consultative forum for NGO’s and Business’s interested in PACER-Plus.

The NSA occurs in conjunction with the Forum Island Trade Ministers Meeting, which is scheduled to take place on 27th and 28th March 2012 in Brisbane.

30 March 2012: Media coverage

Two short articles on March 30th 2012 on Radio New Zealand as a result of AFTINET joint media release with PANG issued on 28th March 2012.

NGO says benefits in alternative approaches to Pacific trade negotiations: http://www.rnzi.com/pages/news.php?op=read&id=67173

Call for more funding so NGOs can take part in Pacific trade talks: http://www.rnzi.com/pages/news.php?op=read&id=67169  

28 March 2012: Non-State Actor Dialogue Fails 'meaningful' test at PACER-Plus talks

The Pacific Network on Globalisation (PANG) and AFTINET have issued a joint media release on the Non-State Actors dialogue which took place in Brisbane on Monday 26th March.

The Australian Fair Trade and Investment Network (AFTINET) said that it's time for Australia to provide the money necessary for the Pacific to hear from NGOs.

“Whilst we appreciate and welcome Australia’s provision of some funding for the NSA dialogue, this consultation is an example of a job half-done. Australia has always acknowledged the constraints in the region including limited funding for consultations and the involvement of NSAs. However the funding provided by Australia and New Zealand is inadequate. So we've now had a consultation that is not representative of the wide spectrum of views in the Pacific, and failed to include any critical voices,” explained Harvey Purse, Trade Justice Campaigner of AFTINET.

“It can hardly be seen as improving the lives of Pacific peoples when the non government sector, with their diverse expertise and views, have less representation at these key consultations than multi-national corporate interests such as big tobacco (BAT), alcohol (Heineken) and finance (ANZ),” said Mr Purse.

Negotiations on the regional trade agreement known as PACER-Plus are underway in Brisbane this week.

For a copy of the media release follow this link.

23 March 2012: NGOs critical of 'consultation about consultation' on regional trade agreement

The Pacific Network on Globalisation (PANG), AFTINET and AID/WATCH have issued a joint media release critical of the key consultation on PACER-Plus which occurs once per year.

The criticism of March’s consultations on a regional free trade agreement focuses on the absence of key voices and lack of focus on the real issues.

“This is the second Non State Actor consultation and again we are seeing the key organisations from the Pacific that work on these issues unable to attend due to funding, undermining the ability of their concerns to be raised. This also appears to only be a consultation about consultation, avoiding the substantive issues contained in a regional trade agreement, issues that will have a huge impact on the lives of Pacific Islanders” commented Adam Wolfenden, Campaigner for the Pacific Network on Globalisation (PANG).

For a copy of the media release follow this link.

Greens Senator Asks Questions on PACER-Plus

Senator Lee Rhiannon asked some interesting questions of officials during Senate estimates on 16 February 2012 to try to clarify Australia’s position relative to negotiations underway between the Pacific Island Countries (PICs) and the European Union.

Senator RHIANNON: Is the government planning to seek a binding and compulsory most favoured nation commitment in the PACER Plus negotiations?

Ms Rawson: As I think we have said before in this committee, the primary objective is the promotion of the sustainable economic development of the forum island countries. It is expected that that agreement would be WTO consistent. Perhaps those with greater knowledge of the particular trade issues than I have could comment on the MFN aspect but certainly we would be aiming to negotiate an agreement that is WTO consistent.

Senator RHIANNON: Is there anybody else who can comment on the MFN possible aspects of PACER Plus?

Mr Gosper: As Ms Rawson has said, in this negotiation we are very much guided of course by both how we might negotiate something which is consistent with the rules that apply to such agreements but also something that will aid the Pacific countries. So the question of whether this agreement proceeds, at what pace it proceeds and whether it actually proceeds to conclusion is very much in the hands of the Pacific countries themselves. If it were to come to conclusion, then of course there would have to be an appropriate element of MFN provided by those countries but there are various ways of course to ensure that particular sensitivities of such countries are protected through phasings or even, in a limited sense, exclusions. But again it is very much in the hands of the Pacific countries.

Senator RHIANNON: As I understand it, one of the requirements is to protect Australian business interests and investments from being disadvantaged. To achieve that, would you not have to go for an MFN commitment?

Mr Gosper: There is an element of the reality that the Pacific countries have negotiated certain concessions with the European Union which would involve tariff concessions and it may well be that that could potentially at some point lead Australian businesses to some disadvantage and that is of course something that the government will have to take account of. But of course the government's primary consideration is to promote the economic development of the Pacific countries, and that is very much the guiding approach to these negotiations.

Senator RHIANNON: There does seem to be a contradiction there. When are you looking after Australia's commercial interests-which I understand is not a key imperative here, but you are saying it is up to the Pacific countries? There appears to be a contradiction there. I maybe wrong, but I would just like that clarified.

Mr Gosper: My point is that it may well be that some Australian businesses are disadvantaged in some of these countries for some products, but Australia has a particular national interest in securing the economic development of this region and we are not looking to foist onto such countries agreements that they find unhelpful or destabilising.

For copy of the transcript follow this link .


PACER-Plus - Australia must support an Independent Trade Adviser and Pacific Island Sovereignty.

Ongoing funding for an Independent Office of Chief Trade Advisor (OCTA) has been a contentious issue, particularly in 2011.

Australia and New Zealand agreed to fund the OCTA for three years from its commencement in 2010. The first year of funding was agreed to very quickly and operations commenced under the Chief Trade Advisor (CTA).

Problems occurred when the contracts were due for the second and subsequent years of funding in early 2011. New Zealand and Australia placed unacceptable conditions onto the funding and into the proposed contracts.

For more information on this aspect of the campaign please follow this link to our PACER-Plus page on the OCTA Funding Campaign .


Pacific Trade Winds Consultations - Suva, Fiji 18th-20th November 2010.

PANG and the organisers of the Pacific Consultation “Navigating Pacific Trade Winds” 18th-20th November 2010 arranged AFTINET’s attendance at the consultations.

For more detail and links to resources from this consultation please follow this link to our PACER-Plus Pacific Trade Winds 2010 page .


Human rights and trade in the Pacific: A paper on designing a Human Rights Impact Assessment for PACER-Plus

IWDA is working with researchers from La Trobe University and the University of Melbourne to undertake a collaborative and innovative desk-research project to identify the appropriateness and potential structure of a gendered Human Rights Impact Assessment (HRIA) for the PACER-Plus trade agreement. This research paper will build the Australian and Pacific Island NGO sector’s knowledge of intersections between human rights and trade, develop appropriate and ‘Pacific specific’ methodologies for undertaking a HRIA, and provide a basis for sector-wide advocacy to strengthen the delivery of AusAID’s Aid for Trade program, and coherence between AusAID’s sustainable development objectives and trade negotiation processes.

For more detail and links please follow this link to our PACER-Plus Human Rights Impact Assessment page


 

Trade and Health Forum Update - Outcomes and Reports available

In Melbourne and Sydney this year the People Health Movement has conducted forums on PACER-Plus and the impact of trade on health. The following link is to the reports and outcomes of both forums on "Health and Trade in the Pacific: PACER-Plus - should we be worried?" from the People's Health Movement website.

The website contains other reports related to the Health implications of PACER-Plus.
http://phmoz.org/wiki/index.php?title=People%27s_Health_Movement_Australia


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

Syndicate content