Push to quicken deal on South Pacific trade

Trade Minister Simon Birmingham wants a major South Pacific trade deal fast-tracked and finalised before the end of the year.

Trade Minister Simon Birmingham says, ‘Having strong, stable and resilient Pacific Island nations is crucial to the success of our region’. Picture: John Montesi

Simon Birmingham wants a major South Pacific trade deal fast-tracked and finalised before the end of the year, potentially boosting Australian exports by “hundreds of millions of dollars”.

Pacific Islands Forum ministers met in Suva this week and committed to activating the regional trade deal after more than 11 years of negotiations amid China’s ­aggressive expansion of its footprint and influence in the region.

The Pacific Agreement on Closer Economic Relations Plus would significantly increase Australia’s exports in the region, which totalled $539m to the Cook Islands, Kiribati, Nauru, Niue, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu in 2018-19.

The communique released by Senator Birmingham, New Zealand Trade Minister David Parker and eight other Pacific nations in Fiji this week pledged to work towards adding the four countries required to bring the PACER Plus into effect.

Australia and New Zealand have funded a $7.7m “readiness package” to support South Pacific nations in progressing ratification of the trade agreement and preparing for its “entry into force”.

The PACER Plus deal is considered a strategic economic agreement for Australia, enhancing Scott Morrison’s Pacific Step-up commitment.

Senator Birmingham said ratification of the PACER Plus would be a “major boost for the region” and bolster trade opportunities across the Pacific region.

“I welcome this further progress towards ratification and during discussions this week with my Pacific counterparts. I have continued to reinforce the benefits of this agreement to the region,” Senator Birmingham told The Weekend Australian.

“Having strong, stable and resilient Pacific Island nations is crucial to the success of our region and can be best guaranteed by working together for economic progress.”

The Trade Minister said Australia would “continue to advocate for the entry into force of PACER Plus this year so the benefits can start to flow to communities, farmers, fishers, businesses and investors across the region”.

The Weekend Australian understands several nations have given firm commitments to ratify the PACER Plus by mid-2020. The agreement would provide more ­efficient Customs practices and “harmonisation of trade agreements” across the South Pacific.

Australian exporters are ­expected to benefit from more predictable and secure market access across sectors including meat, dairy, grains, oilseeds, fats and oils, sugar, processed food and beverages, animal feed, plastics chemicals, metals, specialised machinery and equipment, car parts and electrical goods.

Australia, New Zealand, Samoa and Kiribati have already ratified PACER Plus, with seven other countries currently involved with the process, including the Cook ­Islands, Nauru, Niue, Solomon ­Islands, Tonga, Tuvalu and Vanuatu. Once eight countries have ratified the trade agreement, it will enter into force following a 60-day period.

Senator Birmingham is leading negotiations on several major international trade deals, headlined by agreements with Britain and the EU.

The fast-tracking of PACER Plus, first discussed in 2009, is being led by Australian support ­assisting Pacific nations on legislative drafting, Customs modernisation, training, stakeholder engagement and revenue planning.