STEFAN ARMBRUSTER | SBS | Extracts
THE signing of a Pacific free trade deal in June has been thrown into doubt after Papua New Guinea has said the agreement favours Australia and will damage local industries.
At Pacific free trade talks in Brisbane, the Australia government said it is prepared to offer concessions and will permit thousands more Pacific islanders access to work on temporary visas.
The PACER Plus deal is scheduled to be signed in June after more than six years of negotiations.
Some of the poorest countries in the world are in the Pacific and the 16 island nation deal aims to reduce poverty through trade, however PNG says the trade deal is unbalanced.
“PNG's position is that it is not ready to sign PACER Plus, especially in its current form,” said Max Rai, outgoing PNG director-general of trad,e in a highly critical opening address.
Mr Rai is PNG’s ambassador designate to the United Nations.
“PNG is concerned that the development of our local industries will be threatened by the heavily subsidised and technologically advanced industries in Australia and New Zealand,” he said.
Mr Rai said 'most favoured nation' status for Australia and New Zealand should be removed from the deal after their non-binding commitments on labour mobility and development assistance.
“It shows no genuine interest from Australia and New Zealand in PACER Plus to give special and differential treatment to (Pacific Forum Island Countries) beyond securing market access for their goods and services,” he said.
Meanwhile, Australia’s Department of Foreign Affairs and Trade is outsourcing the delivery of Australia's aid program in Fiji.
Fiji was unable to send high-level representatives to the week-long talks after the devastation caused by Cyclone Winston. It is keen to see the deal finalised even though it shares many of PNG’s concerns.
The agreement will cover Australia's $21 billion trade with Pacific - targeting aid for building trade capacity and infrastructure and promoting economic development in the region.
Australia has rejected the criticism from its largest Pacific trading partners.
“It's important to note, PACER Plus takes into account different development levels and capacities in various Pacific nations,” said senator Richard Colbeck, Australia’s assistant minister for trade. “It's very, very pleasing that the negotiations are progressing well.”
