The Chief Trade Advisor to the Office of the Chief Trade Advisor (OCTA) for the Forum Island Countries has highlighted that recent discussions have revealed some challenges that could hinder Nauru benefitting from the PACER Plus agreement
Dr Edwin Kessie led the consultations in Nauru which invited various stakeholders from the private, non-governmental organisations and government.
“For Nauru to benefit from the agreement... [Nauru] needs to address supply side constraints which prevented them from taking advantage of market access opportunities to strengthen their productive capacity. So in the case of Nauru the seminar revealed that the top priority for the government is to develop their port,” Dr Kessie said.
From the discussions with stakeholders, telecommunications and financial services were identified as additional priorities that would contribute to vibrant private sector.
Dr Kessie is confident that PACER Plus will complement other trade agreements that Nauru has ratified in the past and will not conflict with those agreements.
It was outlined that PACER Plus agreement does not only cover trade in goods but also trade in services, investment, labour mobility, and developmental assistance.
Dr Kessie added that if Nauru ratifies PACER plus it will encourage investment as a benefit. The agreement provisions Nauru’s commitment to good trade practices subsequently encouraging investors to invest in the country.
In terms of labour mobility it is expected Nauru could benefit from revenue in the form of overseas remittance.
Additionally, the skills obtained from working overseas will be an added benefit for the Nauru economy.
The PACER Plus discussions ended late last month with negotiations nearing conclusion and the agreement expected to be ratified this month according to a report in the Nauru Bulletin..
Dr Kessie said the multi-stakeholder discussions were productive and active.
“It was a very good seminar, I think the participants were very active they wanted to know more about PACER Plus. I think they understood what PACER Plus means for them, means for the country... most of them believe it is a platform which Nauru can use to modernise the country and improve the living standards of the people of the country,” Dr Kessie said.
It is expected that all 12 Pacific countries including Australia and New Zealand will meet in April to ratify the agreement in Tonga.
The Pacific Agreement on Closer Economic Relations (PACER Plus) is a trade and economic integration agreement that aims to create jobs, raise standards of living and encourage sustainable economic development in the Pacific region.
Photo : Chief Trade Advisor to the Office of the Chief Trade Advisor (OCTA) Dr Edwin Kessie