Mar 18, 2019 Last Updated 1:19 AM, Mar 18, 2019

Advancing regional integration

Writing about the future of the Pacific Islands Forum (PIF) in this magazine last month, I concluded: “Economic union will come in due course when we deepen regional integration, specifically regional economic integration,” and added that “some structures that will bring this about have been created through our efforts at regional cooperation via the establishments of committees.” I then named the various committees and the private sector body involved.

Pacific Islands Forum Secretary General, Dame Meg Taylor, enlightened us on how to progress with regional integration when she spoke as an Observer at the Asia-Pacific Economic Cooperation (APEC) meeting in Port Moresby on 15 November 2018. She said: “In the Pacific we take a more expansive view of regional integration that extends beyond simple economic or market integration…….Indeed, our approach to integration is unique – the catalyst being Forum Leaders endorsement in 2017 of the Blue Pacific narrative as the core driver of collective regional action in the Pacific. Grounded in the strength of our collective will, the Blue Pacific narrative emphasises action as one ocean continent, based on our shared ocean identity, geography and resources.”

The above statement is loaded and somewhat pedantic. This article unpacks the various issues and forges a way forward on how we can effectively implement and achieve our own resolutions.

The economic union I wrote about is still very much in the mix, judging from Dame Meg’s statement. Economic union comprises a common market. The Forum’s regional integration proceeds beyond market integration, the Secretary General said. I did however write that such market integration is yet to be fully formed in the region.

Moving forward from here does not necessarily mean that we ignore the deficiencies of the past. PIF needs to re-visit its market integration agenda and implement relevant reparations to strengthen its integration bases before it builds further on it. What is needed is that all planned reparatory and foundational structural work directed at future regional integration is carried out on the basis of its Blue Pacific narrative.

As far as PIF’s Free Trade Agreements (FTAs) are concerned – the Pacific Island Countries Trade Agreement (PICTA) for the Forum Island Countries (FICs) and the Pacific Agreement on Closer Economic Relations (PACER) Plus for all members including Australia and New Zealand, the Blue Pacific narrative requires our ‘collective action’; and this should be directed at addressing the still outstanding ratification and implementation of these agreements. Essentially, this is action taken together by members to enable them to implement the agreements and trade freely amongst themselves, and more; enabling an individual member and the group to benefit from regional economic integration.

In terms of PICTA - its Trading in Goods agreement is currently being implemented by less than half of the FICs. Negotiations on its supplementary agreements in Services and Investment are still a work in progress; and this has been ongoing since 2001 when PICTA was first signed and 2004 when FICs Leaders endorsed extension of the PICTA to include Services and Investment.

Such lethargy needs addressing. Clearly, a boost of collective adrenalin from the Blue Pacific narrative is needed here to reinforce and rejuvenate the ‘collective will’ and ‘collective action’ in order to ‘recapture the collective potential’ of the economic integration we all aspire to achieve under Pacific regionalism.

PACER Plus, on the other hand, has proved divisive already. Fiji and Papua New Guinea have pulled out of the agreement. Others may do so in due course. This, clearly, is a blight against the Blue Pacific’s ‘one ocean continent’ approach. Further, it is a blight against ‘collective action’. This is a recipe for reduction in the collective benefit to all.

What is the Forum going to do to bring about the unity it desperately promotes? What specific actions will it take to enable the Blue Pacific narrative to boost and drive the unity it needs given the divide that has already emerged?

What are Australia and New Zealand— the Forum’s developed countries and OECD members, going to do in the same spirit of unity? Will they, in the spirit of give and take, and teamwork, return to the trade negotiations to inject much-needed pragmatic concessions and/or an array of special and differential treatments that may have been sidelined previously?

Implementation of these agreements will require all FICs to readily abolish trade barriers, and other barriers relating to movements of capital and personnel that exist amongst us. We may be further persuaded to consider establishing relevant institutions from pooling of our resources aimed at regionalising specific activities for economic integration. This is the regional integration we all seek.

It will require also, at the national levels, the enabling environment re-enforced with concomitant laws and regulations aimed at achieving sustainability of procedures and benefits under these agreements. Such regulatory and legal requirements are provided for under the Framework for Pacific Regionalism.

The sustainability being sought is the essence of the Blue Pacific narrative. Further, it is the essence of green policies that is fundamental in any land-based development. I tweeted recently: “Lest we forget, protecting our Blue Pacific, our Livelihood and our Home obliges us to guarantee green policy on land in every sector of life. Any shade of colour other than green will eventually tarnish the land that feeds us and will muddy the blueness
of our ocean.”

Such pragmatism will bring immediate benefits through utilising the various trade preferences built into these agreements; and economic development consistent with regional aspirations—our collective will—are likely to be facilitated. This will advance the Leaders’ vision of a region of social inclusion and prosperity. It will underline Blue Pacific’s ‘collective regional action’, grounded in our ‘collective will.’

Furthermore, a Common External Tariff (CET), envisaged by our early Leaders, resonates unity amongst PIF members and underscores our efforts at creating a ‘one ocean continent’, based on our ‘shared ocean identity’ and ‘geography.’ There are options in its application. If configured under PICTA, for example, then FICs need to consider Australia and New Zealand’s special positions as major trading partners whose preferential treatment is ensured under PACER Plus. If CET is configured under PACER Plus, then caution is called for. The issue can be somewhat complex given Australia and New Zealand’s numerous FTAs with other regions
and major global trading partners.

Sailing into known waters

Swire boosts import-export services

A NEW shipping service combined with the upgrade of liner networks will open up key markets in the Asia-Pacific region. Swire Shipping General Manager, James Woodrow, said Asian markets were integral to trade in the Pacific.

“For example Fiji sends a lot of sugar and now minerals by ship to Asia and there is a lot of trade in the opposite direction,” Woodrow said. Speaking to Islands Business after taking over the operations of Pacific Agencies and opening Swire’s re-branded Fiji offices, Woodrow said he was confident of the way forward. “We are looking at slowly expanding our business in Fiji,” Woodrow said.”

“We owned 50 per cent of Pacific Agencies and  Swire has now taken over the entire business. “And we are very proud of the excellent staff Swire has in place in Suva and Lautoka. “We are continuously looking at ways to upgrade our services and network to offer greater frequency, faster transit time and better coverage for our key markets.’ Fiji will provide a vital hub for Pacific exports because of its accessibility to small island countries.

And its large manufacturing base ensures sufficient cargo for shipping companies to move on return voyages. Swire owns the China Navigation Company, which has been operating in and through Fiji since 1958. Its current service provides links to Australia, Papua New Guinea, Singapore, South East Asia, China, Korea and Japan...

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PACER setback

Trade agreement no closer to a Plus in economic cooperation relations for the Pacific 

JUNE 14, this year, marked the signing ceremony of the Pacific Agreement for Closer Economic Relations (PACER-plus) Trade Agreement in Tonga. The ten countries that signed the agreement included; Australia, New Zealand (the “Plus”), Samoa, Solomon Islands, Nauru, Tuvalu, Kiribati, Cook Islands, Niue and Tonga.

That event should have been a keystone Pacific Islands ceremony, and it could have been deferred, given the torrid conditions that had prevailed in the recent “good faith” trade negotiations amongst the Forum Member countries and the conclusive meeting in April, held in Brisbane, Australia. Fiji didn’t sign and could be excused, due to its Government’s decision not to re-join the Forum and had established an alternative organisation.

In my commentary, I deliberately will not talk about the technicalities of a “Free” trade agreement, as an instrument for enhancing closer economic relations in the Pacific, but I offer a personal reflection on my disbelief and disappointment that the key principles of governance and leadership, that have been the cornerstone of the Pacific Islands Forum, for more than four decades, have been diminished and ignored. PACER-plus was to be an umbrella, multilateral trade agreement between Australia and New Zealand (combined) with the 12 Pacific Island Countries, but it has now become an agreement for trade cooperation, 

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Chocolicious

How a 1-week contest inspired farmers and boosted Solomons cocoa exports

TEN new farmers emerged as finalists at this year’s Solomon Islands Chocolate Week – a sign that more cocoa producers are becoming interested in producing quality cocoa. And according to the Solomon Islands Commodities Export Marketing Authority, the annual event has had a direct impact on the volume of cocoa beans exported to boutique chocolate markets by the Solomon Islands.

Held at the National Auditorium in Honiara from April 24-28, this year’s event was hailed as a success by stakeholders for its support of cocoa farmers and for facilitating new more profitable market opportunities for their quality cocoa.

The event was organised by the Australian and New Zealand-funded Pacific Horticultural and Agricultural Market Access (*PHAMA) Program, Adventist Development Relief Agency (ADRA) and Solomon Islands Rural Development Program (RDP), in collaboration with the Commodities Export Marketing Authority (CEMA) and Ministry of Agriculture and Livestock (MAL).

Through PHAMA’s support, chocolate makers from Australia, New Zealand, and the USA attended as judges. 

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The 33rd Australia Papua New Guinea Business Forum and Trade Expo was a bonus for local agricultural and handicraft producers seeking to promote their products and expand their networks. With support from the Pacific Horticultural and Agricultural Market Access (PHAMA*) Program, local producers of coffee, coconut and cocoa occupied five of the 57 booths at the Trade Expo, with two of the booths dedicated to promoting Papua New Guinea handicrafts.

In addition to showcasing their products, the businesses interacted with around 400 delegates from Australia, Papua New Guinea and New Zealand who were part of the two-day forum, as well as the many Port Moresby residents who visited the booths. Susan Bakani of Artisan Culture, who exhibited in the handicraft booth, said she met many visitors interested in her products and felt the expo had given her an opportunity to expand her network.

PHAMA’s support is part of its ongoing work to improve market access for Papua New Guinea industries which is in line with the Government of Papua New Guinea’s policy to promote agriculture...

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