PACER PLUS HEADQUARTERS TO BE BUILT IN SAMOA
By: Joshua Lafoai
Samoa will home the Pacific Agreement on Closer Economic Relations Plus, (PACER Plus) headquarters.
The rights for the PACER Plus regional headquarters to be located on local soils was awarded to Samoa this month at the completion of the tender process.
Tonga, the Solomon Islands, and Vanuatu submitted proposals however after due diligence, Samoa’s bid was given the green light.
Construction of the headquarters is scheduled to start December this year.
Meanwhile the regional PACER Plus agreement since negotiations started in 2009 has satisfied the minimum requirement for eight Pacific Forum Countries to endorse the trade pact.
PACER Plus needed eight ratifications from 12 countries in the Pacific in order to be approved. On October 15, 2020, the Cook Islands signed the PACER Plus agreement and became the eighth Pacific island country to ratify it.
And the milestone is applauded by Prime Minister Tuilaepa Dr. Sailele Malielegaoi acknowledging the wisdom and long term vision by the eight signatories made in the best interest of their respective countries.
“This agreement will help local production thrive in the export markets, while at the same encourage affordable imports for the region,” the Prime Minister added.
Since 2009, the Ministry of Foreign Affairs and Trade (MFAT) have taken the lead on behalf of Government during the negotiation process.
And MFAT’s Chief Executive Officer Peseta Noumea Simi in announcing Samoa’s successful bid before Cabinet Development Committee CDC elaborated on the PACER Plus spin-offs.
“Some of the benefits of PACER Plus to Samoa include no tariffs on our exports to Australia and New Zealand starting from the first day the agreement is official,” Peseta said.
“Within the next 25 years, the agreement will lower the costs of tariffs of imported goods into Samoa as well,” she added.
One such spin-offs include the commitment by Australia and New Zealand to remove import duties on all originating products from PACER Plus countries, when the agreement enters into force.
This would mean that Samoa’s exports will enter Australian and New Zealand markets duty free, provided the products originate from Samoa, according to the rule of origins.
“Overall, the agreement will cover; trade in goods (including rules of origin, customs procedures, sanitary and phytosanitary, technical regulations, standards and conformance), trade in services, investment and development and economic cooperation, transparency, consultation and dispute settlement,” said a press statement issued by MFAT.
PACER Plus is the regional trade, development and economic cooperation agreement between the Forum Island Countries, Australia and New Zealand.
It will provide assistance to PACER Plus island countries to strengthen their capacity to benefit from regional and international trade and contribute to achieving economic growth and sustainable development.
Australia and New Zealand have committed to jointly fund the AUD$25.5m Development and Economic Cooperation Work Programme (DECWP) from entry into force of the PACER Plus. The DECWP has six main components linked to the different aspects of the agreement:
• Rules of Origin and tariff commitments
• Customs Procedures
• Sanitary & Phytosanitary measures
• Technical Regulations
• Standards & Conformity
• Trade in Services & Investment
In preparation for entry into force of the agreement and implementation, Government will focus on the key areas including the prioritisation of Samoa’s trade related needs, technical capacity building and trainings for stakeholders on priority areas, communications and long term work to include the implementation of obligations including promotion of transparency in trade policy development, export development and trade promotion and strengthening of cooperation through the Arrangement on Labour Mobility.
