PACER Plus Countries Prepare for Trade Deal Ratification

Australia, New Zealand, and eight Pacific island countries signed the Pacific Agreement on Closer Economic Relations Plus (PACER Plus) last week in Nuku’alofa, Tonga, eight years after negotiations for the trade and development deal began. According to a joint statement released by Australian trade minister Steve Ciobo and assistant trade minister Keith Pitt, the regional accord has the “potential to reshape the economic fundamentals of the Pacific region.” The negotiations themselves concluded last April. Echoing these sentiments, New Zealand trade minister Todd McClay described the deal on 20 June as a “high quality trade and development agreement” that supports sustainable economic development in Pacific countries. "PACER Plus strikes a fair balance between lowering tariffs and offering greater certainty for New Zealand businesses and investors, while ensuring Pacific Island countries benefit from trade. Those benefits include increased capacity and the modernisation of their economies at a sustainable and realistic pace,” said McClay. In order to reach the deal’s development goals and boost trade and employment, PACER Plus focuses on various aspects of goods and services trade, as well as investment. For example, on goods trade it covers rules of origin and customs procedures, as well as provisions for improving market access...