For immediate release
Download copy of briefing paper here
Globalisation is coming to the Pacific. But are the islands heading for a free-trade paradise; are they forever lumbered with their colonial inheritance; or is there another way – a Pacific way?
The Pacific Institute of Public Policy (PiPP) has released another in its series of trade briefing papers in an attempt to untangle the complex language of trade agreements and focus discussions to address such fundamental questions as:
1. What will the islands export in order to benefit from trade deals?
2. Are there enough points of different for countries to specialise and trade competitively?
3. What are the benefits of deals with Canberra and Wellington?
4. Can multilateralism bolster commerce with the wider world?
“A key challenge facing Pacific island governments is the shift away from special treatments for exports to former colonial powers,” says Mr John Licht, PiPP Business Development Manager and trade specialist, adding “economic separation is also less feasible and the big trading partners like Europe, Australia and New Zealand have high expectations for the Pacific to further liberalise, and at their pace.”
The PiPP briefing paper notes that special relations with former colonial powers encouraged dependence on a limited range of commodities and a select few export destinations. Tariffs protected Pacific producers from foreign competition and generated significant proportions of government revenue. They also delayed the reality of inefficient and uncompetitive local industries.
Despite the existence of agreements among the Pacific island states, intra-regional trade has been low, mainly due to the massive distances and the lack of products to sell one another. In the words of a Pacifc Islands Forum Secretariat official “the islands are hardly going to sell a lot of coconuts and fish to each other.”
Confronting the challenges of globalisation is no easy task, especially when small, developing nations are at a clear disadvantage in terms of negotiating power. But Pacific island countries can move beyond fish and coconuts and capitalise on a more liberal trading environment.
Each country could benefit from export-oriented trade policy that focuses on a few select areas in which each country has an actual or potential comparative advantage such as tourism, food processing, fisheries and certain agricultural products.
“Doing nothing is not an ideal strategy as the region cannot continue to rely on past arrangements and high tariffs. Being prepared is essential, as to leave everything undecided until the end is to play into the hands of the powerful” says Mr Licht.
The Pacific Institute of Public Policy is an independent, non-partisan and not-for-profit think tank based in Port Vila, Vanuatu and exists to stimulate and support policy debate in the Pacific.
The PiPP trade briefing papers are available online at www.pacificpolicy.org.
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For more information contact:
Derek Brien
Pacific Institute of Public Policy
Tel: +678 29842
Email: dbrien <at> pacificpolicy.org
