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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

PACER Plus: Introduction & Overview

Kaliopate Tavola

4 September 2009

  • Introduction
  • Overview
  • Challenges
  • Issues
  • Role of the Private Sector
provisions of the pacer agreement
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
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
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 date6
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
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
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 wto9
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
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
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 interests12
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
Consideration of Alternatives
  • ANZ unilaterraly conferring benefits to FICs - WN
  • SPARTECA Plus - Oxfam
  • Enhanced GSP - ditto
  • PACER-lite - ditto
role of the private sector
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