Australia’s participation in Pacific Agreement on Closer Economic Relations (PACER) Plus negotiations
Overview
Forum Leaders launched negotiations for a new regional trade and economic agreement, known as PACER Plus, at their fortieth meeting in August 2009.
Consistent with the decisions taken by Leaders in August 2009, Forum Trade Ministers met in Brisbane on 23 and 24 October to take the next steps in the PACER Plus negotiations. The outcomes document released at the conclusion of the October 2009 Forum Trade Ministers' meeting (FTMM) incorporates important decisions that will guide the future PACER Plus negotiations, including: Forum Island country confirmation of their preferred candidate for the Chief Trade Adviser, the framework for the future negotiations and implementation of the Pacific Islands Leaders' agreed mechanism relating to Fiji.
On the framework for the PACER Plus negotiations, Forum Trade Ministers:
(i) Agreed that no more than three Forum Trade Officials Meetings on PACER Plus be undertaken per year in addition to annual Forum Trade Officials’/Ministers’ Meetings. The next Officials meeting is tentatively scheduled to take place in February 2010
(ii) Agreed that, when appropriate, additional Forum Trade Ministers’ Meetings would be called. The next Trade Ministers’ meeting is tentatively scheduled to take place in late April/May 2010;
(iii) Agreed that national consultations are essential.
(iv) Agreed that during the preliminary stage of negotiations, within the next 12 months, Members would focus on:
a. consolidating the Office of the Chief Trade Adviser;
b. intensifying national consultations, bearing in mind the differing capacities of Members to undertake consultations; and
c. undertaking meetings at officials’ level to deepen understanding on common priority issues including, but not limited to: Rules of Origin; Regional Labour Mobility (beyond Mode 4); Development Assistance (focusing on physical infrastructure for trade, trade development and promotion); and Trade Facilitation, including Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Standards and Customs Procedures.
(v) Noted that Members also identified the following priority issues for discussion: Services, including Health, Education, Telecommunications, Shipping and Aviation; Investment; Economic Cooperation; and Environment including renewable energy.
(vi) Agreed that, during this preliminary stage, it would be premature to table any draft consolidated legal text.
Background
Pacific Islands Forum Leaders agreed at their fortieth meeting to commence negotiations on PACER Plus. Leaders welcomed an earlier decision of Forum Trade Ministers to establish the Office of the Chief Trade Adviser, and affirmed Forum Trade Ministers’ plans to no later than November to take the next steps in the negotiations.
Leaders directed that the Trade Ministers should discuss a framework for PACER Plus negotiations including: timelines; identification of issues; and issues in respect of which the Chief Trade Adviser could negotiate. Leaders affirmed the need for an annual review of progress of the PACER Plus negotiations and the arrangements for the Office of Chief Trade Adviser. Leaders noted the need for Forum Island Countries to undertake national consultations with all stakeholders and capacity building for the negotiations.
As decided by Forum Leaders in Cairns, the PACER Plus negotiations will involve at the outset: Australia, the Cook Islands, the Federated States of Micronesia, Kiribati, Nauru, New Zealand, Niue, Palau, Papua New Guinea, the Republic of the Marshall Islands, Samoa, the Solomon Islands, Tonga, Tuvalu and Vanuatu.
Forum Leaders agreed that the Fiji military regime would not participate in the negotiations. The Fiji military regime’s exclusion from the negotiations is the sad but inevitable result of Commodore Bainimarama’s refusal to meet the reasonable deadlines and conditions set by Forum Leaders in January 2009.
However, Leaders agreed that Fiji officials would be kept informed of the negotiations following each negotiating meeting by a representative from the meeting, with the representative also able to convey back to the next negotiating meeting any views from Fiji.
Australia is ready to welcome Fiji to the negotiating table once the military regime takes credible steps to return the country to democracy and the rule of law.
For Australia, Pacific regional trade and economic integration are essential components of what the Prime Minister, in his landmark Port Moresby Declaration, called ‘a new era of cooperation with the island nations of the Pacific’.
Australia's motivation in supporting PACER Plus is to help the Forum Island Countries promote their own sustainable economic development. The negotiation of a new regional trade and economic agreement provides the opportunity to create jobs, enhance private sector growth, raise standards of living, and boost long-term economic growth in Forum Island Countries.
PACER Plus negotiations will include elements of trade capacity building and trade development assistance elements designed to strengthen Forum Island Countries' ability to trade.
Australia is conscious of the negotiating capacity constraints faced by Forum Island Countries and has committed to providing Forum Island Countries with appropriate capacity building and support.
Australia, for instance, is already providing substantial funds for each Forum Island Country to commission independent research on PACER Plus and training for Forum Island trade officials to prepare for PACER Plus negotiations. Australia has also provided funding for officials from Forum Island Countries to attend regional meetings to discuss PACER Plus.
Australia is also providing $500,000 a year for three years to help fund the Office of the Chief Trade Adviser, to provide independent support and advice to Forum Island Countries over the course of the negotiations. New Zealand is making the same contribution with regard to the Office of Chief Trade Adviser.
Public submissions
The Department of Foreign Affairs and Trade continues to welcome public submissions and comments on Australia's participation in PACER Plus negotiations.
Submissions will be published on the DFAT website, unless notified otherwise. Please indicate if you do not want your submission to be made publicly available. Submissions may be made electronically to PACERPlus@dfat.gov.au, or by post or fax to:
PACER Plus FTA Section
Department of Foreign Affairs and Trade
R G Casey Building
John McEwen Crescent
Barton ACT 0221
Fax: 02 6261 2661
Copyright and Content
Copyright in submissions resides with the author(s), not with the Department of Foreign Affairs and Trade.
The views expressed in these submissions are the views of the author(s) and should not be understood as reflecting the views of the Department of Foreign Affairs and Trade.
Submissions received
Submissions have been received from a wide range of interested parties including industry, business, community and labour representatives and government agencies. The following persons and organisations have provided non-confidential submissions and comments:
Aid Watch 
ANZ
Australian Council for International Development
Australian Fair Trade and Investment Network
Australian Industry Group
Australian Pork Limited
BJS Group
Bruck Group
Chamber of Commerce and Industry Queensland
Community and Public Sector Union
Eden Power
Frosty Boy Australia
Mr Jawed Gebrael
Dr Nicole George
Global Justice Network of the Grail in Australia
Greenlight Technology Group Pty Ltd
Ms Shona Hawkes
Honda
Institute for International Trade
International Women’s Development Agency
Mr Philip Kidner
Law Institute of Victoria
Lowy Institute for International Policy
Ms Lara Mason
Music Council of Australia
National Farmers' Federation
National Institute of Accountants
Northern Territory Government
Oxfam Australia
Philip Morris Ltd
QANTAS
Rural Solutions SA
SafeWork South Australia
Uniting World
Ms Rosie Wong
A summary of views expressed in public consultations was tabled in Parliament on 18 August.
Media Releases & Speeches since August 2009
- 23 October 2009: Negotiations begin on a new Pacific agreement, joint media release by Trade Minister Crean and Parliamentary Secretary Byrne
- 2 October 2009: Australia delivering trade support to the Pacific, joint media release by Trade Minister Crean and Parliamentary Secretary McMullan
- 18 August 2009: Commencement of PACER Plus negotiations, statement by Trade Minister Crean