Private Sector Concerned About Pacer Plus

30th July, 2009

Representatives of the private sector, including the Chamber of Commerce, the Manufacturers' Association and Women in Business met today to discuss recent progress towards a possible free trade agreement with Australia and New Zealand, called 'PACER Plus'.

Officials from the Department of External Trade organised the event, and provided an update on several meetings with other Pacific countries.

A PACER Plus free trade agreement would commit Solomon Islands to reducing most import duties to zero for goods coming from Australia and New Zealand. It may also guarantee Australian and New Zealand businesses that offer services the right to the same treatment and benefits as firms from Solomon Islands. It could extend into various additional areas.

The meeting recognised the possibility that Solomon Islands could benefit from more opportunities for its people to work abroad, especially if these opportunities were 'locked in' to a binding trade agreement. But many worried about moving ahead too quickly with negotiations, without proper consultation with the private sector and other stakeholders. They recognised that any agreement could do serious damage to the private sector, if its interests were not carefully taken into consideration.

Participants were concerned that leaders of Forum countries might launch negotiations as early as next week, without consultations having yet been completed. This could be particularly dangerous if leaders do not adopt a roadmap which defers negotiations until after proper consultations have been conducted.

The meeting expressed the view that it would be premature to launch negotiations until a support organisation such as the Office of the Chief Trade Advisor had been established to support national consultations, and to provide expert advice and analysis as to how PACER Plus might influence the country. To begin negotiation without that support would place countries like Solomon Islands at a clear disadvantage.

Participants urged leaders to be cautious in their deliberations next week, considering how much is at stake for Solomon Islands and the region.

The Department of External Trade has provided information about PACER Plus on its website (http://www.trade.gov.sb/) and welcomes feedback from the public.