Page 22 - IB FEB 2019
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Trade

         Advancing regional                                  being implemented by less than half of the FICs. Negotiations on
                                                             its supplementary agreements in Services and Investment are still
                                                             a work in progress; and this has been ongoing since 2001 when
         integration                                         PICTA was first signed and 2004 when FICs Leaders endorsed
                                                             extension of the PICTA to include Services and Investment.
                                                               Such lethargy needs addressing. Clearly, a boost of collective
                                                             adrenalin from the Blue Pacific narrative is needed here to re-
                                                             inforce and rejuvenate the ‘collective will’ and ‘collective action’
                                                             in order to ‘recapture the collective potential’ of the economic
                                                             integration we all aspire to achieve under Pacific regionalism.
                                                               PACeR Plus, on the other hand, has proved divisive already.
                                                             Fiji and Papua New Guinea have pulled out of the agreement.
                                                             Others may do so in due course. This, clearly, is a blight against
                                                             the Blue Pacific’s ‘one ocean continent’ approach. Further, it is a
                    By Ambassador Kaliopate Tavola           blight against ‘collective action’. This is a recipe for reduction in
                                                             the collective benefit to all.
         WRITING about the future of the Pacific Islands Forum (PIF) in   What is the Forum going to do to bring about the unity it des-
         this magazine last month, I concluded: “economic union will come   perately promotes? What specific actions will it take to enable the
         in due course when we deepen regional integration, specifically   Blue Pacific narrative to boost and drive the unity it needs given
         regional economic integration,” and added that “some structures   the divide that has already emerged?
         that will bring this about have been created through our efforts   What are Australia and New Zealand— the Forum’s developed
         at regional cooperation via the establishments of committees.” I   countries and OeCD members, going to do in the same spirit of
         then named the various committees and the private sector body   unity? Will they, in the spirit of give and take, and teamwork,
         involved.                                           return to the trade negotiations to inject much-needed pragmatic
          Pacific Islands Forum Secretary General, Dame Meg Taylor,   concessions and/or an array of special and differential treatments
         enlightened us on how to progress with regional integration when   that may have been sidelined previously?
         she spoke as an Observer at the Asia-Pacific economic Coopera-  Implementation of these agreements will require all FICs to
         tion (APeC) meeting in Port Moresby on 15 November 2018. She   readily abolish trade barriers, and other barriers relating to
         said: “In the Pacific we take a more expansive view of regional   movements of capital and personnel that exist amongst us. We
         integration that extends beyond simple economic or market inte-  may be further persuaded to consider establishing relevant in-
         gration……. Indeed, our approach to integration is unique – the   stitutions from pooling of our resources aimed at regionalising
         catalyst being Forum Leaders endorsement in 2017 of the Blue   specific activities for economic integration. This is the regional
         Pacific narrative as the core driver of collective regional action   integration we all seek.
         in the Pacific. Grounded in the strength of our collective will, the   It will require also, at the national levels, the enabling environ-
         Blue Pacific narrative emphasises action as one ocean continent,   ment re-enforced with concomitant laws and regulations aimed at
         based on our shared ocean identity, geography and resources.”  achieving sustainability of procedures and benefits under these
          The above statement is loaded and somewhat pedantic. This ar-  agreements. Such regulatory and legal requirements are provided
         ticle unpacks the various issues and forges a way forward on how   for under the Framework for Pacific Regionalism.
         we can effectively implement and achieve our own resolutions.  The sustainability being sought is the essence of the Blue Pa-
          The economic union I wrote about is still very much in the   cific narrative. Further, it is the essence of green policies that is
         mix, judging from Dame Meg’s statement.  economic union   fundamental in any land-based development. I tweeted recently:
         comprises a common market. The Forum’s regional integration   “Lest we forget, protecting our Blue Pacific, our Livelihood and
         proceeds beyond market integration, the Secretary General said.   our Home obliges us to guarantee green policy on land in every
         I did however write that such market integration is yet to be fully   sector of life. Any shade of colour other than green will eventu-
         formed in the region.                               ally tarnish the land that feeds us and will muddy the blueness
          Moving forward from here does not necessarily mean that   of our ocean.”
         we ignore the deficiencies of the past. PIF needs to re-visit its   Such pragmatism will bring immediate benefits through utilis-
         market integration agenda and implement relevant reparations   ing the various trade preferences built into these agreements; and
         to strengthen its integration bases before it builds further on it.   economic development consistent with regional aspirations—our
         What is needed is that all planned reparatory and foundational   collective will—are likely to be facilitated. This will advance the
         structural work directed at future regional integration is carried   Leaders’ vision of a region of social inclusion and prosperity. It
         out on the basis of its Blue Pacific narrative.     will underline Blue Pacific’s ‘collective regional action’, grounded
          As far as PIF’s Free Trade Agreements (FTAs) are concerned   in our ‘collective will.’
         – the Pacific Island Countries Trade Agreement (PICTA) for the   Furthermore, a Common external Tariff (CeT), envisaged by
         Forum Island Countries (FICs) and the Pacific Agreement on   our early Leaders, resonates unity amongst PIF members and un-
         Closer economic Relations (PACeR) Plus for all members includ-  derscores our efforts at creating a ‘one ocean continent’, based on
         ing Australia and New Zealand, the Blue Pacific narrative requires   our ‘shared ocean identity’ and ‘geography.’ There are options in
         our ‘collective action’; and this should be directed at addressing   its application. If configured under PICTA, for example, then FICs
         the still outstanding ratification and implementation of these   need to consider Australia and New Zealand’s special positions
         agreements. essentially, this is action taken together by members   as major trading partners whose preferential treatment is ensured
         to enable them to implement the agreements and trade freely   under PACeR Plus. If CeT is configured under PACeR Plus, then
         amongst themselves, and more; enabling an individual member   caution is called for. The issue can be somewhat complex given
         and the group to benefit from regional economic integration.   Australia and New Zealand’s numerous FTAs with other regions
          In terms of PICTA - its Trading in Goods agreement is currently   and major global trading partners.

         22 Islands Business,  February 2019
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