Page 14 - IB FEB 2017

Trade
Melanesia’s new sin gle market economy

By Joe Yaya
THE Melanesian countries in the Pacific
dominate the economic landscape in
the region and with that vantage point;
they are on the verge of formalising a
new free trade agreement to operate
in a single market economy that will
bring prosperity to their citizens and
economies.
We can call them the M4 or the Big4 -
PNG, Fiji, Solomon Islands and Vanuatu
- whose combined market size of 9.6
million people encompasses 94 per cent
of the whole Pacific region.
But they prefer to be known as the
MSG, or the Melanesian Spearhead
Group. And just as the name suggests,
its role is to spearhead trade and eco-
nomic integration for the benefit of the
member countries.
The idea to form a new trade bloc was
first introduced in 2005 by the MSG
leaders and over the years the concept
has blossomed into what is now being
penned to allow the free movement of Fiji Prime Minister Voreqe Bainimarama and Solomons PM Manasseh Sogavare after signing the trade agreement.
Photo: Supplied
goods and services, investments, and “We are making history. Though we and thereby increase their status as an
labour amongst the four countries. are small nations, we are seizing the influential sub-regional body. This is the
Consent to the agreement from Solo- opportunity to control our own collective overarching goal.
mon Islands and Fiji make it half com- destiny as much as we can—to advance However, the success of the agreement
plete. Once PNG and Vanuatu ratify, by our own efforts, by the strength of is heavily reliant on the active involve-
which could be any day now, it becomes our own will, and by the power and ment of the private sector, since the
the only trade agreement operational in ingenuity of our own people,” Baini- governments do not actually trade but
the Pacific. marama said. rather facilitate the processes of trade
Solomon Islands Prime Minister On the contrary, US President Donald through bio-security, ports and customs
Manasseh Sogavare, also the incumbent Trump is also making history. He is plan- facilities.
Chair of the MSG, is confident the agree- ning on building a wall on the Mexican To attract the private sector and bolster
ment will achieve its purpose “to aid border to inhibit the illegal movement intra-MSG trade, tariff and non-tariff
the economies of the Melanesian bloc”. of people. He is withdrawing America impediments have been removed. And
“The new free trade agreement will from the Trans-Pacific Partnership (TPP) skilled labour is allowed to move freely.
harness the strengths and tap the op- agreement with 11 other countries in the A major private sector player in the
portunities of the Melanesian economies Pacific Rim. Instead, he will engage in manufacturing industry is FMF Foods
as they move to implement a free and more bi-lateral agreements with other Limited. The Fiji-based company’s suc-
integrated trade zone,” Sogavare said. countries as a catalyst for America’s cess has come from the opportunities the
Fiji Prime Minister Voreqe Bainima- prosperity. MSG countries have offered and where
rama told the media when he signed the The MSG believes the multi-lateral they are actively trading in.
agreement last month that since 2010, nature of their trade bloc through the A hindrance to increase profit margins
income from Fiji trading with other MSG inter-linking of their economies will over the last decade has been the high
countries had surpassed FJ$300 million. consolidate their position in the region tariffs on their products when distrib-

14 Islands Business, February 2017