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PACER Plus: Introduction & Overview. Kaliopate Tavola 4 September 2009. Scope. Introduction Overview Challenges Issues Role of the Private Sector. Provisions of the PACER Agreement.
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PACER Plus: Introduction & Overview Kaliopate Tavola 4 September 2009
Scope • Introduction • Overview • Challenges • Issues • Role of the Private Sector
Provisions of the PACER Agreement • Art 3(2): PP to be ‘stepping stone’ to allow FICs to gradually become part of a single regional market and integrate into the international economy • More advanced regionalism envisaged • Art 5(1): provides for the trigger point at which PP is to start • 8 years after PICTA has come into force • Triggered off by FTA negotiations as per Art 6 • Art 6(3): provides for consultations with a view to the commencement of negotiations of a FTA
What is PACER Plus? • Art 5(1): ……with a view to establishing reciprocal free trade arrangements • Art 6(1): specifies FTA, customs union or an interim agreement leading to a FTA as per Art XXIV, GATT • PP can be bilateral, sub-regional or regional – Art 6(3)(b) • The + has expanded the scope, form and nature of the agreement to be negotiated • Definitions of + abound
The PACER Plus Process to date • Notifications under Art 6(2) took place when PACPS entered into negotiations on EPA • Consultations under Art 6(3)(a) have taken place when PACPS commenced formal negotiations with EU on EPA • There have been 4 informal consultations already at officials level and reports submitted to the FTMM • There has been 1 informal ministerial consultation • FTMM report went to PIF in Cairns • PIF has decided ‘to commence PP negotiations forthwith’.
The PACER Plus Process to date • CTA position has been advertised and applications closed • Next FTMM will be in November 2009 in FSM • Agenda: Framework of PP negotiations; timelines; identification of issues; issues for CTA to negotiate • Leaders noted the need for FICs to undertake national consultations and capacity building • Fiji will not participate but will be kept informed at the officials level.
The Expectations of PACER Plus • More than just a FTA • PP is to be a development tool – to go beyond DDA and EPA • Apart from national benefits, there is commitment to direct much benefits to the collective development needs of the FICs in the interest of REI and regionalism as a whole • To craft a unique and visionary development trade agreement between developed ANZ and developing FICs
Realization of Expectations in the context of WTO • Art XVIII GATT: ‘Government Assistance to Economic Development’ • Protective or other measures affecting imports • Additional facilities to maintain sufficient flexibility in tariff structure to grant tariff protection for the establishment of a particular industry • Application of TRQ for BOP purposes • Can deviate temporarily from provisions
Realization of Expectations in the context of WTO • Art XXIV GATT: ‘FTAs’ • Notification • Derogation facilities • Substantially all the trade (SAT) • Period of tariff reductions • Part IV GATT: ‘Trade and Development’ • Preferential treatment – ‘Enabling Clause’, which consolidates SDTs for developing countries, and non-reciprocity in trade agreement
The Challenges the Negotiators face • Commitment to take the negotiations beyond conventional reach • Commitment to be creative in formulating SDT, asymmetry, differentiation, etc • Commitment to go beyond WTO conventions • Commitment for the bigger picture – REI • Commitment to notifying to the WTO an unprecedented developmental FTA
Forum Island Countries Interests • Adequate resources to cover adjustment costs • Attention to supply-side constraints to take advantage of market access • Attention to ‘behind the border’ activities • Attention to industrialization measures • Simplified and facilitative ROO that will encourage industrialization and diversification • Broad-based economic growth to generate lost tax revenue and more
Forum Island Countries Interests • Elimination of NTB, tariff peaks, tariff escalation • Promoting and safeguarding ‘special products’ to FICs • Labour mobility schemes • Optimizing new opportunities, e.g. economies of scale • Concessionary ‘SAT’ • Concessionary ‘reasonable length of time’ • Differentiated market access offers
Consideration of Alternatives • ANZ unilaterraly conferring benefits to FICs - WN • SPARTECA Plus - Oxfam • Enhanced GSP - ditto • PACER-lite - ditto
Role of the Private Sector • Tongan Informal Consultation agreed with the engagement of the NSAs • NZAID study on capacity building and how best to engage NSAs. • Awaiting report • PIPSO’s first workshop on PACER Plus – 25 June 2009