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The Pacific Network on Globalisation (PANG) says Pacific Island countries like Fiji and Papua New Guinea must think very carefully before signing any trade-in-goods agreement with the EU.
PANG Coordinator, Roshni Sami said it would be extremely difficult for the states that are thinking of signing to study the full implications of the deal, given the short time-frame they have to do so.
"Even at this late stage, key stakeholders here in Fiji have very little information about what is in the interim agreement," said Sami.
"The Pacific really is being pushed to take a leap in the dark here."
The EU has threatened a loss of preferential market access in key sectors for the economies of Fiji and PNG, namely sugar and tuna, although Fiji's access is guaranteed until 2009 when the sugar protocol expires.
"Fiji and PNG have been cornered into a position where not signing would have serious consequences for Pacific livelihoods," she said.
"The pursuit of this interim agreement has been thoroughly undemocratic, and explicitly sidelined the development priorities set by Pacific governments."
Sami said these priorities were outlined in the Pacific draft Economic Partnership Agreement (EPA) text in mid 2006, but they have been by-and-large ignored by the EU.
The outcome of the agreement, she said will have implications for the shaping of Pacific economies for generations, and the two nations signing will leave other Pacific countries in a difficult position.
"In addition, the interim deal may well have conditions that force the Pacific to make agreements with the EU on investment and services in the wider EPA negotiations.
"Those negotiations will continue in 2008. The Pacific is under no obligation to negotiate in these areas to have WTO-compatible trade relations with the EU, and Pacific trade negotiators should not sign anything that commits them to further hasty liberalisation."
Sami added that perhaps the most alarming part of the interim-agreement is that it will trigger Australia and New Zealand to seek the same tariff-free access to Pacific markets.
"The Pacific's big brother neighbours may even try to seek the same market access without offering compensatory measures (such as allowing short-term labour migration for Islanders, or increases in aid) if the Pacific has already set a precedent with the EU," she said.
"If the same access was extended to Australia and NZ, the Pacific could face chaos, with serious reductions in government revenue, business closures and job losses."
