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Pacific Islands To Negotiate New Trade Deal,
by Mary Swire, Tax-News.com, Hong Kong
Tuesday, August 11, 2009
The 40th South Pacific Islands Forum, held recently in Australia, agreed that
Forum Trade Ministers should meet, no later than November this year, to discuss
a framework for a new regional trade and economic integration agreement.
Coming at the end of the two-day summit of leaders from Australia, New Zealand
and 13 other Pacific islands, the initiation of this new agreement,
known as PACER Plus, is intended to foster greater intra-regional trade opportunities
by proceeding with the implementation of key regional trade agreements and,
in particular, working to allow for the free movement of goods and services.
Australia and New Zealand have both provided funds to assist each of the Islands
to prepare their positions for future PACER Plus negotiations. It is foreseen
that any future agreement will need to include individual schedules of each
country’s commitments, with tailored trade development assistance, taking
into account their individual particular circumstances.
Any PACER Plus negotiations will proceed against concerns that the only beneficiaries
of such a free trade agreement would be Australia and New Zealand, given their
large trade imbalances with, and the lack of industry in, the other islands.
In particular, it has been pointed out that a standard Free Trade Agreement
with Australia and New Zealand would see the other islands losing a large slice
of government income currently obtained from their high import tariffs. A report
commissioned by the Secretariat of the Pacific Islands Forum has stated, for
example, that the present percentage of revenues represented by import duties
on goods originating in Australia and New Zealand are over 17% in both Tonga
and Vanuatu.
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