Pacific deal talks on, Fiji urges caution

October 23, 2009 07:34:33 AM

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Fiji has called on Pacific island countries to exercise “the fullest extent of caution” as it remains out of negotiations for a controversial Pacific regional trade deal.

Trade ministers from Australia, New Zealand and Pacific island countries will meet in Brisbane for two days from today as negotiations are launched for the Pacific Agreement on Closer Economic Relations (PACER-Plus).

Leaders from the 16-nation Pacific Islands Forum agreed at a summit in Cairns, Australia, in August to launch negotiations for PACER-Plus, although some island leaders expressed concerns they were being rushed into talks.

To this end, Fiji’s Minister for Foreign Affairs, International Cooperation and Civil Aviation cautioned that Forum Island countries must be wary when considering making commitments on the framework for PACER Plus.

“Most of the FICs, including Fiji, have not yet completed extensive national consultations with stakeholders to identify national positions for PACER Plus negotiations,’ he said.

“Until extensive consultations are completed and national positions clear, FICs should defer making commitments on the timelines, the coverage and the mandate for the Chief Trade Advisor.”

The PACER-Plus plan is controversial, with critics saying free trade would greatly favour Australia and New Zealand, which already have a heavy trade imbalance in their favour with the island countries.

They say the islands' local industries would be destroyed by cheaper imports and their governments would lose a large slice of their revenue if tariffs and duties were lifted on Australian and New Zealand goods.

Canberra and Wellington say the deal would increase trade in the region and associated development assistance would ensure PACER-Plus worked in the island nations' favour.

AFP reports, Barry Coates, the executive director of aid organisation Oxfam New Zealand saying this week any rigid free trade deal would mean a loss of government jobs and revenue in the region and worsen poverty and health problems.

"What is needed is an economic cooperation agreement, with the Pacific’s development at its core," Coates is quoted saying.

"New Zealand and Australia have talked the talk on making this a development agreement, they now need to walk the walk."

The first step should be proper consultations with business and community groups within the island countries, he said.

"A rush to start negotiations without this preparation could cause irreparable damage to the islands’ economies and their development prospects."

Meanwhile, on the issue of Fiji’s exclusion from the PACER Plus negotiations as a result of its suspension from the Forum, Minister Kubuabola reiterated that “Fiji could not be expected to be bound by any decisions taken in our absence”.

The Fiji Government has also expressed concern that it’s continued exclusion from regional trade meetings will “permanently fragment” the Pacific Island countries.

The Melanesian bloc is strongly backing Fiji’s inclusion in Forum discussions.

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