Page 15 - IB FEB 2017

Trade
Melanesia’s new sin gle market economy

‘ making history. ism, Industry and Trade, Shaheen Ali
Fiji’s Permanent Secretary for Tour-
... We are
says a lot of economic opportunities
are there for both countries because
Though we are
advantages exist in both economies”.
small nations, genuine “complimentary comparative
PNG banks have large investments in
we are seizing hotels in Fiji and Fiji has investments in
the retail and wholesale sector in PNG.
the opportunity “The new agreement could be a con-
to control duit to further catalyse these opportuni-
ties to be explored,” Ali said.
Mr Ali says the agreement will also
our collective forge technical cooperation in spe-
destiny as much cialised areas such as medicine and
as we can - to civil aviation, while fostering closer
cooperation and interaction in trade and
advance by our investments.
“There are other whole sectors this
own efforts, by agreement will give impetus to for the
the strength MSG region to develop.”
Ram Bajekal is confident the agree-
of our own ment will not only prosper the MSG
countries, but businesses as a whole
will, and by because while income generation of in-

the power and dividuals and households will increase,
so will the demand for products.
ingenuity of our Significance of the Agreement
people ... ‘ This agreement is forging a sense
of regionalism. While the Melanesian
- Voreqe Bainimarama bloc is ready to fully integrate through
the free movement of goods, services,
investments, and labour across borders,
uted in the region. The benefits to the local economies the move could be deemed a stepping
“A lot of enabling environment which of each country will mostly be in the stone to wider regional integration.
was missing has been put together form of remittances. In Fiji, remittances It should bolster the other two trade
through this one now and therefore are the second highest revenue earner agreements that are important to the
with the signing of this new agreement besides tourism. The shortage of skilled region, but hang in the balance.
and everyone else coming on board will labour in Fiji’s building and construction PICTA (Pacific Island Countries Trade
facilitate a much smoother trade for us,” sector could be relieved. And so could Agreement) that supports “trade in ser-
managing director Ram Bajekal said. the scarcity in PNG’s mining sector. vices” and “labour mobility” amongst
The labour mobility aspect of the Since all the MSG countries are services- the 14 Forum Island countries.
agreement has also appealed to the oriented, particularly through tourism, And PACER (Pacific Agreement on
company. the opportunities are there to market Closer Economic Relations) with Austra-
“For us we are hoping the skills scar- the MSG region as a one-stop tourism lia and New Zealand that also promotes
city in certain areas, especially the trade destination for long haul travellers from greater regional trade and economic
skills, are now eased and we have a lot continental Europe and North America. integration with the 14 Forum Island
bigger pool to look from.” Solomon Islands and PNG have WWII countries.
This uninhibited movement of labour memorial sites that could attract these The Melanesians are showing that
will apply to all professions in all sectors visitors, and the countries may wish to with high-level commitment and politi-
such as nurses and doctors, teachers, ac- open up the services in these sectors if cal will, consensus can be reached when
countants, architects, lawyers, workers they wish to. countries come together to achieve a
in the building and construction indus- PNG and Fiji will be the main players common goal, which in this case, is
try and those in the mining industry. in this scheme because they are the two economic prosperity.
So it encompasses all and there are no largest members in terms of population n yayajoe@gmail.com
restrictions. market size.

Islands Business, February 201715