Page 36 - Islands Business May-June 2022

MSG

we went to the UN and succeeded. So as the MSG family, debate over the role of sub-regional organisations and their
that’s the spirit I want to see re-instated and reinvigorated: relations with the Pacific Islands Forum. This has been high-
the spirit of enterprise, the spirit of can do.” lighted by the proposed withdrawal from the Forum of the
This ambition relates to trade policy as well, which remains five members of the Micronesian Presidents’ Summit (MPS),
a central plank of the MSG agenda. amidst anger over the 2021 election of Henry Puna as Forum
“When our leaders in the mid-1980s decided to go into the Secretary General. The Polynesian Leaders Group (PLG) is also
MSG Trade Agreement, we agreed to start with three prod- becoming more active, as Forum looks locally for post-COVID
ucts,” Louma said. “Everybody did not think that was work- recovery.
able – we were the laughing stock in most cocktail parties. Louma disagrees that this sub-regional co-ordination under-
They said, ‘What can these countries do with only three prod- cuts the ongoing role of the Forum or other member agencies
ucts?’ Our leaders said we must start off with what we can of the Council of Regional Organisations of the Pacific (CROP).
bite and chew and swallow. Let’s be realistic – we start with “For me, the MSG and any other sub-regional group is not a
three. Now we have ended up with over a thousand items that threat to regionalism,” he said. “All sub-regional organisations
we are trading with!” are building blocks for a stronger regionalism. Therefore, I do
The early phases of the MSG Trade Agreement focussed on not see activities done within the Micronesian summit or in
trade in goods but has now expanded to a more ambitious the Polynesian Leaders Group or in the MSG as being divisive.
– but as yet incomplete – plan to expand trade policy into “I’ve always held this view: for regionalism to really be ef-
the services sector, as well as creating mechanisms for free fective, we need strong sub-regionalism,” he added. “With a
labour mobility across Melanesian nations. However only two bigger group, it is more difficult to build consensus and to find
of the four member states have so far signed and ratified the common ground, to push a particular issue fast. Whereas in
updated version of trade agreement. sub-regional groupings, you can move, because of the smaller
Since his appointment Louma has been consulting with MSG numbers involved. You can find common ground much easier,
members to advance this central plank of regional co-oper- and from there, you build confidence – then you go to the
ation: “I’ve had consultations with Papua New Guinea who larger group to say ‘see, this is what we are able to do.’ If
has not yet signed. The trade officials are working very hard they are comfortable, over time we can expand the reach of
to reconcile their commitments in other trade arrangements, this initiative to other countries in the region.”
so it’s similar to what they are committed to in the MFTA. As Forum leaders prepare for a face-to-face summit in mid-
The message I’ve got from them, is that as soon as they’ve July, there is significant discussion about processes of con-
reconciled all those commitments, they would be ready to sultation and the election of its leadership. For Louma, it is
sign off.” crucial that Forum members hold to their commitments: “One
“In the meantime, I’m happy to note that in all my consul- of the lessons that can be learnt from the Micronesian experi-
tations, the trade officials have been very positive, encourag- ence is that in the region, if we agree with other how we are
ing our business sector to interact with each other without going to do things – written or unwritten – then we should be
waiting for a formal MSG Trade Agreement to be operational,” able to find within ourselves to honour that. If we start to do
he said. “I’ve spoken to PNG officials, to BSP, to Credit Corpo- things in a way with variance with what we think, that’s when
ration, to Lamana Holdings – all said we are not going to wait unnecessary hiccups come in the way of regionalism.”
for the services sector of the new trade agreement to come
into play. We are already exploring opportunities in the MSG Self-determination on the agenda
countries.” Unity in the Melanesian Spearhead Group has been strained
As Islands Business reported last month, Melanesian compa- on occasions over the last decade, such as the dispute over
nies are seeking to expand niche markets like the revitalised the transfer of the MSG chair to post-coup Fiji in 2009-2010,
kava trade to Australia. Louma also sees encouraging signs or ongoing differences over relations with Indonesia.
of private sector investment by local corporations across This issue arose again in March, when the MSG Secretariat
national boundaries: “The Lamana group of companies have received a contribution of US$100,000 from the Indonesian
gone as far as Samoa, as far as Honiara. The Solomon Islands National Police. The ULMWP and Vanuatu government raised
NPF [National Provident Fund] is a shareholder in one of our concern over the donation at a time Indonesia is deploy-
hotels in Loloata Island Resort in PNG. So between them, they ing troops and police to West Papua, and cracking down on
are not waiting for the new trade agreement with the services protests against Jakarta’s plans to divide West Papua into five
sector included, they are exploring opportunities now.” provinces. Dialogue with the Jokowi administration has failed
Smaller island states around the region have signed on to to open the way for a diplomatic mission to West Papua by the
the PACER-Plus trade agreement, but the two largest island UN Human Rights Rapporteur.
economies – Fiji and Papua New Guinea – have refused to sign Acknowledging this debate, Louma rejects suggestions that
on to the Australian-initiated agreement. Louma suggests this the MSG is divided over the vexed question of West Papua.
won’t change any time soon: “PNG trade officials suggest that “In Melanesia, in Micronesia or in Polynesia, we have
after the reconciliation of trade agendas, they will look at the disagreements amongst ourselves, now and then, within the
MSG Trade Agreement first, and look at PACER-Plus later.” family,” he said. “But we have always been able to reconcile
those differences and continue to pursue common objectives,
Building blocks for regionalism collective interests as a family. For me, within MSG, there are
The focus on Melanesian networking comes at a time of Continued on page 41

36 Islands Business, May-June 2022