Pacific ACP Trade Ministers Reaffirm EPA Objective

Pacific ACP Trade Ministers Meeting Reaffirmed The Course Of EPA Negotiations

Pacific ACP Trade Ministers met in Port Vila from 31 July to 01 August to decide on a way forward on the EPA negotiations and other important regional trade matters. The Meeting has confirmed that the region will not back away from the key objective of the EPA Negotiations that a good EPA must as a development tool for the Pacific ACP economies, beyond a Free Trade Agreement.

'The main challenge is not to sign any EPA by the deadline, but to aim for the best possible EPA that serves the key objective as a development tool for ACP economies'

A recent email communication from the EC implicates a linkage between the final programming of the 10th European Development Fund (EDF) with the Economic Partnership Agreement (EPA) and the level of allocation of the 10th EDF is contingent upon an EPA being successfully negotiated.

The Ministers seek clarification through a the letter signed by the Chair of the meeting and Vanuatu's Trade, Commerce, Industries and Tourism Minister, Hon. James Bule that was addressed to Mr Louis Michel, the EC Commissioner for Development, reaffirming the region's position that conditionality imposed on the programming of the 10th European Development Fund (EDF) on the outcomes of EPA Negotiations will not be acceptable and will affect the region's course in the EPA negotiations.

While an unofficial response has been received from the EC Delegation in Suva, the Ministers are currently still waiting for the official response from Commissioner Michel following the proper protocol.

Aside from the EPA negotiations, the region also reaffirmed its commitment on regional integration through the implementation of the Pacific Island Countries Trade Agreement. The Meeting agreed that to expedite the process of implementing PICTA. At the moment only Fiji, Samoa and Cook Islands have started trading under PICTA. Niue and the Republic of Vanuatu announced their readiness to trade under PICTA during the meeting, pending the receipt of their official letter of exchange by the Pacific Island Forum Secretariat as PICTA depository body.

Trade Officials must be actively involved in progressing PICTA implementation in their countries, including by liaising directly with the respective national authorities responsible for the completion of the instrument of acceptance and deposit the instruments with PIFS as soon as practical to make effective the amendments to PICTA already agreed to by the Trade Ministers.

In Solomon Islands, the Ministry of Foreign Affairs, External Trade and Immigration has been working closely with the Customs and Excise of the Ministry of Finance to urge for the amendment of the Customs and Excise Act be completed to give effect to the implementation and operation of the Agreement.

Solomon Islands have ratified PICTA since 2003, and subsequently reconfirmed the negative list in 2005 and the amended liberalisation schedule of the agreement in 2007. It will urgently need to finalise the domestic legal requirements in order to officially announce its' readiness to trade under PICTA. Any delay will be costly for our own Private Sector who could potentially start to benefit from better market access to and greater regional market.

The Meeting further agreed that national consultations be held on the possible trade liberalisation of alcohol products in the context of PICTA, and that the outcome of these consultations be discussed further by PICTA parties.

However the Meeting deferred the decision on the inclusion of tobacco products into PICTA till 2009 to allow further time to assess all the implications of such possible inclusion.
On PACER, the Pacific Agreement on Closer Economic Relations with Australia and New Zealand which Solomon Islands is also a signatory too, the Ministers considered a way forward on how to response to the Australian and New Zealand proposal for consultations on PACER.

PACER requires Forum Island Countries to commence negotiations for an FTA in 2011 (8 years after entry into force of PICTA). However the provision under Article 6 of PACER requires countries to offer to consult as soon as a practicable if formal negotiation of an FTA with a third party has been commenced.

The general concern reflected in the Meeting is the capacity constraints in the Pacific ACP States to handle two major negotiations in parallel. Hon. Patteson Oti stated clearly during the meeting that Solomon Islands will not prematurely enter into a consultation or negotiation on another Free Trade Agreement unless adequate consultation and national capacity is in place.

Discussion on PACER was continued during the Forum Trade Ministers Meeting that took place from 02 to 03 August also in Port Vila.

ENDS

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