Pacific trade deal moves closer

PACIFIC – The Pacific’s chief trade advisor says “significant progress” has been made with the Pacer Plus trade agreement and it should be concluded by September next year.

Negotiations have been underway on the trade in goods and services deal, involving New Zealand, Australia and Pacific island countries, for eight years.

Dr Edwini Kessie is expecting more progress when the parties meet in Apia in two weeks.

He said the advance comes with Australia this month committing to lift the cap on its seasonal employment scheme, and to extend it to the entire agriculture sector nationally and to the tourism sector in some areas.

He said Australia has also extended the labour scheme to include all 14 island countries negotiating the Pacer Plus deal.

“That has re-energised negotiations,” he told Radio New Zealand. “New Zealand has also increased the cap and it is also looking at the possibility of making further improvements to the RSE.

“The two countries have also agreed to the Pacific Islands Forum countries to provide them with assistance to address supply-side constraints which have prevented them from taking advantage of trade agreements.

“So I think because of the movement of labour mobility and development assistance, this has put us in a good position to conclude the negotiations.

“Initially, the major stumbling block was labour mobility. But with the announcement by the government of Australia and also New Zealand looking at ways to improve the RSE, I think that’s really, these two have changed the dynamics and that is why I think we are in a position to conclude the negotiations as soon as possible.

“ The argument was that if we were to have commitments to labour mobility included as part of the Pacer Plus agreement then that would trigger obligations of Australia and New Zealand, and the separate FTAs they are.

“So there’s now a broad agreement among the parties that the commitments on labour mobility would not be part of Pacer Plus, it would be an arrangement, so it would be like a side agreement, not part of an agreement.

“So that way we avoid any potential problems whereby Australia and New Zealand may be forced to give what they have given to the Pacific island countries to other trading partners.

“The commitments on labour mobility would not be an integral part of the agreement. So it would exist separately.

“I hope that agreement will be reached on this issue at the meeting in Samoa.”