Pacific nations’ threat
Post Courier (Papua New Guinea), 28th July 2005
Pacific nations’ threat
Papua New Guinea and other Pacific Island countries (PIC) are likely to be forced to drop trade barriers earlier than planned to Australia and New Zealand.
That would mean massive revenue losses from premature phasing out of tariffs and increased competition from imported goods that have already been scheduled under Pacific Islands Countries Trade Agreement (PICTA).
The irony is that Australia and New Zealand who stand to benefit from this trend towards open markets in the region have failed to honour arrangements under PICTA’s complementary arrangement - Pacific Agreement on Closer Economic Relations (PACER).
Under Pacer, Australia and New Zealand committed to fund a regional trade facilitation program to build trading capacities of the 14 PICs who are also Pacific ACP states with annual funding of $F8 million (K15.2 million).
Trade and Industry Minister Paul Tiensten revealed this yesterday while delivering a ministerial statement in Parliament on economic partnerships agreements between the Pacific ACP states and European Union, Melanesian Spearhead Group, Pacific Island Countries Trade Agreement (PICTA) and the Pacific Agreement on Closer Economic Relations (PACER).
Mr Tiensten said because Australia and New Zealand are major trading partners, the Pacific countries face real issues of revenue loss arising from the phasing out of tariffs and increased competition from imported goods in a premature FTA arrangement with the two Pacific powers.
PICTA was signed as a treaty in 2001 after two years of negotiations. The treaty, ratified by PNG in 2003, commits the 14 PICs to dismantle import tariffs and non-tariff barriers to trade over an eight-year period. Those designated as Less Development Countries (LDCs) and Small Island States (SISs) have an additional two years to complete their tariff reduction commitments under PICTA.
