Pacific Agreement on Closer Economic Relations

Last updated

The Pacific Agreement on Closer Economic Relations (PACER) is an umbrella agreement between members of the Pacific Islands Forum (the Forum Island Countries plus Australia and New Zealand) which provides a framework for the future development of trade cooperation.

It was first signed at Nauru on 18 August 2001 [1] and entered into force on 3 October 2002. [2] It is a framework agreement that sets an outline for the future development of trade and economic relations across the Forum region as a whole.

It does not contain substantive trade liberalisation provisions; rather it envisages a step-by-step process of trade liberalisation. [3] This starts with a free trade agreement in goods among Pacific Island countries (PICTA – the Pacific Island Countries Trade Agreement), in the process of implementation as of September 2008, and later likely to be extended to services. PACER provides for programmes of assistance to the island country members with trade facilitation and capacity building. It also foreshadows future negotiations on Forum-wide reciprocal free trade (including Australia and New Zealand). For the moment these negotiations are not scheduled until 2011, but they are likely to be brought forward as a consequence of the Pacific Island countries' negotiation of an Economic Partnership Agreement with the European Union.

In May 2005, Forum Trade Ministers decided that there was a need to move beyond SPARTECA towards a more comprehensive framework for trade and economic cooperation between Australia, New Zealand and the FICs, as provided for under PACER, to foster economic growth, investment and employment in the Pacific region. They called for a study to investigate the potential impacts of a move towards such a comprehensive framework and for an analysis of FIC needs in regard to capacity building, trade promotion and structural reform. Terms of reference for the study were approved in 2006 and a draft of the study presented to Trade Ministers in 2007.

PACER includes a Regional Trade Facilitation Programme to improve the trading capacity of Pacific Island countries. This provides technical assistance at a regional level through the Pacific Islands Forum, the Pacific Community (SPC) and Oceania Customs Organisation on a number of key issues in regards to customs facilitation, quarantine procedures and standards and conformance assessment. This regional trade facilitation work is financially supported by New Zealand.

PACER Plus is the free trade agreement between the Forum Island Countries and Australia and New Zealand. It was opened for signature in Nuku'alofa, Tonga in June 2017 [4] and entered into force on 13 December 2020. [5]

A key element for improving intra-regional trade will be to improve air services and shipping links in the region, so that goods can be moved more quickly through the region and to other markets. The Pacific Islands Air Services Agreement (PIASA) which came into force in October 2007 is intended to lead to a single aviation market and bring benefits in terms of increased access to air routes between Pacific Island Countries, more airline alliances and code-sharing arrangements, and cost savings for airlines and travellers.

Progress in opening up the aviation market follows success by the region in improving shipping. In 1977 the Pacific Islands Forum set up the Pacific Forum Line a regional shipping line with the mandate to function both as a business and means of regional development. The company, headquartered in Auckland, began trading in 1978. It struggled in its early years but is now profitable. The New Zealand Government is a shareholder in the line. Work is proceeding under the Pacific Plan on options for improving feeder shipping services to a number of small island states.

On 27 January 2021, the European Union and the Pacific Islands Forum Secretariat agreed a project worth EUR 5.75 million to enhance the trade capacity of Pacific Island countries. The project titled “Strengthening Pacific Intra-Regional and International Trade (SPIRIT)” is designed to boost and increase intra-regional and international trade by strengthening institutional and technical capacity in the Pacific Island region. It will also facilitate the implementation of other trade agreements, in particular the Economic Partnership Agreement (EPA) and of the Pacific’s Aid-for-Trade Strategy 2020-2025. [6]

Related Research Articles

<span class="mw-page-title-main">ASEAN</span> International organization of Southeast Asian countries

The Association of Southeast Asian Nations, commonly abbreviated as ASEAN, is a political and economic union of 10 states in Southeast Asia. Together, its member states represent a population of over 600 million over a land area of 4.5 million km2 (1.7 million sq mi). The bloc generated a purchasing power parity (PPP) gross domestic product (GDP) of around US$10.2 trillion in 2022, constituting approximately 6.5% of global GDP (PPP). ASEAN member states include some of the fastest growing economies in the world, and the institution occupies a central position in East Asian regionalism.

<span class="mw-page-title-main">Asia-Pacific Economic Cooperation</span> Economic forum of Asia–Pacific nations

Asia-Pacific Economic Cooperation is an inter-governmental forum for 21 member economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region. Following the success of ASEAN's series of post-ministerial conferences launched in the mid-1980s, APEC started in 1989, in response to the growing interdependence of Asia-Pacific economies and the advent of regional trade blocs in other parts of the world; it aimed to establish new markets for agricultural products and raw materials beyond Europe. Headquartered in Singapore, APEC is recognized as one of the highest-level multilateral blocs and oldest forums in the Asia-Pacific region, and exerts significant global influence.

<span class="mw-page-title-main">Pacific Islands Forum</span> Intergovernmental organization of island nations in the Pacific Ocean

The Pacific Islands Forum (PIF) is an inter-governmental organization that aims to enhance cooperation among countries and territories of Oceania, including formation of a trade bloc and regional peacekeeping operations. It was founded in 1971 as the South Pacific Forum (SPF), and changed its name in 1999 to "Pacific Islands Forum", so as to be more inclusive of the Forum's Oceania-spanning membership of both north and south Pacific island countries, including Australia. It is a United Nations General Assembly observer.

From 1916 to 1975, Tuvalu was part of the Gilbert and Ellice Islands colony of the United Kingdom. A referendum was held in 1974 to determine whether the Gilbert Islands and Ellice Islands should each have their own administration. As a consequence of the referendum, the separate British colonies of Kiribati and Tuvalu were formed. Tuvalu became fully independent as a sovereign state within the Commonwealth on 1 October 1978. On 5 September 2000, Tuvalu became the 189th member of the United Nations.

<span class="mw-page-title-main">Pacific Union</span>

The Pacific Union is a proposed development of the Pacific Islands Forum, first suggested in 2003 by a committee of the Australian Senate, into a political and economic intergovernmental community. The union, if formed, would have a common charter, institutions and currency. Although John Howard, the former Prime Minister of Australia, spoke of a Pacific Union whilst in office, his government's emphasis was focused on bilateral relations and agreements with the individual states of the Forum.

<span class="mw-page-title-main">Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation</span> International cooperation organisation

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is an international organisation of seven South Asian and Southeast Asian nations, housing 1.73 billion people and having a combined gross domestic product of US$5.2 trillion (2023). The BIMSTEC member states – Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand – are among the countries dependent on the Bay of Bengal.

<span class="mw-page-title-main">Melanesian Spearhead Group</span> Intergovernmental organization

The Melanesian Spearhead Group (MSG) is an intergovernmental organization, composed of the four Melanesian states of Fiji, Papua New Guinea, Solomon Islands and Vanuatu, and the Kanak and Socialist National Liberation Front of New Caledonia. In June 2015, Indonesia was recognized as an associate member.

The South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA) is a nonreciprocal trade agreement in which Australia and New Zealand offer duty-free and unrestricted access for specified products originating from the developing island member countries of the Pacific Islands Forum. The agreement was signed in 1980 in Tarawa, Kiribati, and subject to Rules of Origin regulations, designed to address the unequal trade relationships between the two groups. The textiles, clothing and footwear (TCF) industry has been a major beneficiary of SPARTECA through the preferential access to Australian and New Zealand markets. The agreement entered into force on 1 January 1981.

<span class="mw-page-title-main">Free trade agreements of New Zealand</span>

New Zealand is party to several free trade agreements (FTAs) worldwide.

<span class="mw-page-title-main">China–Japan–South Korea trilateral summit</span> Annual diplomatic meeting

The China–Japan–South Korea trilateral summit is an annual summit meeting attended by the People's Republic of China, Japan and South Korea, three major countries in East Asia and the world's second, fourth and 12th largest economies. The first summit was held during December 2008 in Fukuoka, Japan. The talks are focused on maintaining strong trilateral relations, the regional economy and disaster relief.

<span class="mw-page-title-main">Asia-Pacific Trade Agreement</span> Trade agreement formerly known as Bangkok Agreement

The Asia-Pacific Trade Agreement (APTA), previously known as the Bangkok Agreement and renamed 2 November 2005, was signed in 1975. It is the oldest preferential trade agreement between countries in the Asia-Pacific region. The APTA covers market for 2921.2 million people [2] which accounts for US$14615.86 billion in terms of gross domestic product (GDP) in the Fiscal Year (FY) 2015-2016. APTA’s key objective is to hasten economic development among the seven participating states opting trade and investment liberalization measures that will contribute to intra-regional trade and economic strengthening through the coverage of merchandise goods and services, synchronized investment regime and free flow of technology transfer making all the Participating States to be in equally winsome situation. Its aim is to promote economic development and cooperation through the adoption of trade liberalization measures. APTA is open to all members of the United Nations Economic and Social Commission for Asia and the Pacific, which serves as the APTA Secretariat. Members of APTA are currently participating in the Fourth Round of Tariff Concessions, which are expected to conclude in October 2009.

The Comprehensive Economic Partnership for East Asia (CEPEA) is a Japanese led proposal for trade co-operation, free trade agreement, among the 16 present member countries of the East Asia Summit. All those movements and efforts were taken over by the following Regional Comprehensive Economic Partnership.

The Office of the Chief Trade Adviser (OCTA) is an independent trade advisory body of the Forum Island Countries. OCTA provides policy advice and capacity-building support to the Forum Island Countries, particularly in the Pacific Agreement on Closer Economic Relations (PACER) Plus trade negotiations with Australia and New Zealand. OCTA was established on 29 March 2010 and is based in Port Vila, Vanuatu. The first to be appointed to the Chief Trade Adviser position was Chris Noonan, an academic from New Zealand. Noonan resigned in September 2011. The OCTA Governing Board then appointed Julia Tijaja, the Trade Policy Adviser, as Caretaker Chief Trade Adviser in the interim until the new Chief Trade Adviser came on board. In February 2012, Edwini Kessie, an international trade law expert, was appointed the new Chief Trade Adviser. Kessie took up his post in June 2012. Thirteen Forum Island Countries are currently members of the OCTA; Cook Islands, Federated States of Micronesia, Kiribati, Nauru, Niue, Palau, Papua New Guinea, Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. OCTA is fully owned and is under the exclusive control of its members.

<span class="mw-page-title-main">Pacific Institute of Public Policy</span> Think tank based in Port Vila, Vanuatu

The Pacific Institute of Public Policy (PiPP) is an independent, non-profit, regionally focused think tank based in Port Vila, Vanuatu. The stated aim of PiPP is to stimulate and support informed policy debate in the Pacific. A central feature of PiPP's model of engagement with policy stakeholders is the distribution of research via several media including: research syntheses, discussion papers, forums, public debates, social networking, audio and video podcasts, press, radio and television. PiPP was established on November 21, 2007, under the Vanuatu Charitable Associations (Incorporation) Act [CAP.140]. PiPP covers policy issues across the following Pacific Island Countries: Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu

<span class="mw-page-title-main">Regional Comprehensive Economic Partnership</span> 2020 Asia-Pacific free trade agreement

The Regional Comprehensive Economic Partnership is a free trade agreement among the Asia-Pacific countries of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. The 15 member countries account for about 30% of the world's population and 30% of global GDP, making it the largest trade bloc in history. Signed in November 2020, RCEP is the first free trade agreement among the largest economies in Asia, including China, Indonesia, Japan, and South Korea.

PACER Plus is a free trade agreement between members of the Pacific Islands Forum. The agreement expands the existing Pacific Agreement on Closer Economic Relations (PACER) to include further trade liberalisation and development assistance. It entered into force on 13 December 2020.

The Timor-Leste–Indonesia–Australia Growth Triangle (TIA-GT) is a combined initiative of the regions of Eastern Indonesia, Northern Australia, and the Democratic Republic of Timor-Leste. This initiative aims to promote and foster economic growth through integrated economic development in the region that these nations reside in. The growth triangle was created in 2012, after a meeting was held by Indonesian president Susilo Bambang Yudhoyono with Prime Minister of Australia Julia Gillard and Timor-Leste Prime Minister Xanana Gusmao. The initiative aims to support economic, social, and cultural development primarily by attracting investment, developing manufacturing industries, enhancing human capital, and overall building a stronger cooperative relationship between the three countries involved. The initiative also aimed to accelerate the accession of Timor-Leste into the Association of Southeast Asian Nations (ASEAN) and to fulfill goals set by Timor-Leste's Strategic Development Plan, such as increasing the nation's economic prosperity and stability. The growth triangle is often misinterpreted as a free-trade zone; however, while there are elements of free trade agreements between Indonesia and Australia specifically, the terms of the growth triangle initiative are not directly linked to these free trade agreements, and the goals of the growth triangle do not specifically encompass free trade between the three nations.

<span class="mw-page-title-main">Indo-Pacific Economic Framework</span> Economic initiative led by the United States

The Indo-Pacific Economic Framework for Prosperity (IPEF) is an economic initiative launched by U.S. President Joe Biden on May 23, 2022. The framework launched with fourteen participating founding member nations in the Indo-Pacific region with an open invitation for other countries to join.

References

  1. ↑ "REGIONAL TRADE AND ECONOMIC COOPERATION AGREEMENTS". Pacific Islands Report. 28 August 2001. Retrieved 2 March 2021.
  2. ↑ "PACIFIC AGREEMENT ON CLOSER ECONOMIC RELATIONS COMING INTO FORCE". Pacific Islands Report. 13 September 2002. Retrieved 2 March 2021.
  3. ↑ Wadan Narsey (1 April 2004). "PICTA, PACER and EPAS: Where Are We Going?". Pacific Magazine. Archived from the original on 21 November 2008.
  4. ↑ "PACER Plus". New Zealand Ministry of Foreign Affairs and Trade. Retrieved 18 September 2018.
  5. ↑ "Pacific Agreement on Closer Economic Relations (PACER) Plus". Australian Department of Foreign Affairs and Trade. Retrieved 2 November 2020.
  6. ↑ "European Union provides FJD 14.3 million to strengthen Pacific Trade Capacity". United Nations. 27 January 2021. Retrieved 28 January 2021.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.