South Pacific Trade Agreement Comes Into Force In December 2020

Fourteen Pacific nations are participating in a new regional trade agreement, known as PACER Plus, which is “designed to support Pacific island countries to become more active partners in, and benefit from, regional and global trade, as well as to provide commercial benefits to Australian businesses”.

Countries participating are Australia, New Zealand, Samoa, Tonga, Vanuatu, Cook Islands, Solomon Islands, Nauru, Niue, Kiribati, Palau, Tuvalu, Republic of the Marshall Islands and the Federated States of Micronesia. Cook Islands was the eighth to sign and ratify the Agreement, triggering the countdown to it coming into force on 13 December 2020.

The Australian Trade Minister, Simon Birmingham, in announcing the milestone, said .. “PACER Plus is about improving opportunities for trade and investment …” and he went on to say … “This trade deal … will see benefits flow to communities, farmers, fishers, businesses and investors”.

Under the deal, Australia and NZ will help Pacific Island nations to improve their customs processes, simplify their regulations and build a framework of international rules covering trade that are consistent with WTO guidelines, as well as bind tariffs on imports of goods from Pacific Island nations at xero.

The deal is the first trade agreement for Pacific nations covering services and investment in sectors such as fisheries, agriculture, tourism, manufacturing and energy. Services are the principal source of jobs in these nations. PACER Plus “will create more transparent and predictable operating conditions for domestic and foreign service providers”.

Australia is committing an additional A$20m to assist initiatives under the agreement, part of over A$1.4bn official development assistance to Pacific Island Nations in 2020/21.

The agreement will open more opportunities for investment into and trade from and between Pacific island nations. Talk to us for more information.