Preparing for PACER Plus benefits Featured
29 January, 2019. Last week Customs and Trade Officials from across the Pacific attended a workshop focused on modern, flexible Rules of Origin to be adopted under the Pacific Agreement on Closer Economic Relations (PACER Plus).
The new rules will benefit Pacific businesses. Under PACER Plus, for example, businesses will be able to claim duty free treatment for imported textiles that have been cut and sown and create new opportunities for clothing manufacture in the Pacific.
The workshop was led by the Oceania Customs Organisation. It is one of a number of activities taking place in the Pacific region over the coming months to support PACER Plus implementation.
Customs modernisation and ICT solutions was also a focus of discussions, recognising the importance of the digital economy for the Pacific, including Tonga.
Under PACER Plus, each Pacific country will get a new trade portal to reduce red tape and make it easier for businesses to trade and invest in the Pacific by having access to clear information about government procedures.
Tongan businesses will be able to clearly see how long it takes to get an export license, what documents are required, and what fees are involved. Investors will be able to look at legislation across the Pacific and understand how to access opportunities. This level of transparency will be world class, and help businesses have confidence to invest and grow their businesses in the Pacific.
These projects are funded as part of the PACER Plus Readiness Package ($A7.7 million) provided by Australia and New Zealand to participating Pacific signatories.
PACER Plus is expected to enter into force in 2019. It will open up a new package of support from Australia and New Zealand, valued at $A25 million, which will fund trade related development activities identified by the participating Pacific governments and national stakeholders as priorities.
Pacific governments who have signed PACER Plus are encouraged to consult widely on priorities for assistance, to help ensure the work programme and separate targets for Aid for Trade will meet the real needs of businesses on the ground and ensure Trade for All.
New Zealand’s Aid for Trade target is valued at over $NZ740 Million for the first five years of implementation of PACER Plus. Early discussions on Aid for Trade have highlighted the diverse interests of Pacific governments, including in the services (such as call centres) and ICT sectors, as well as more traditional exports of goods.
PACER Plus is a development and trade agreement which has been signed by Australia, Cook islands, Kiribati, Nauru, New Zealand, Niue, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. All Forum Island countries are encouraged to join the agreement.
