Pacific Network on Globalisation

By Pacific Network on Globalisation

3rd December 2015

New brief says Regional trade agreement bad for business

A new briefing paper released today states that Pacific businesses will pay too high a price from the current proposals in the regional trade agreement, known as PACER-Plus. The paper, released by the Pacific Network on Globalisation (PANG), details the dangers posed by PACER-Plus for Pacific livelihoods and how out of touch with the Pacific reality such free trade agreements are.

“PACER-Plus is sold as a great economic outcome for the Pacific but what we’re seeing is an agreement that is not being designed to support a dynamic Pacific economy. Rather it is one that will allow the bigger companies from Australia and New Zealand to further their already significant interest in the markets of the region” commented Adam Wolfenden, Campaigner with the Pacific Network on Globalisation.

The briefing paper, titled “Bad for Business: How PACER-Plus is a price too high for Pacific livelihoods and businesses” warns that an agreement in its current form will see weak safeguards unable to best protect local industries, significant loss of revenue for Pacific governments, and a shrinking ability to support domestic producers.

“Safeguarding local and infant industries is crucial to creating vibrant economies that support domestic producers yet the mechanisms proposed by the Office of the Chief Trade Advisor under PACER-Plus are too narrow in their scope, response and trigger to be of best use to protect Pacific businesses. Even the contentious interim Economic Partnership Agreements, something Papua New Guinea and Fiji only reluctantly signed has a broader safeguard mechanism than what is contained in PACER +,” added Mr Wolfenden.

“Australia and New Zealand already have a permanent, strong safeguard mechanism yet they are arguing against offering the same thing for the Pacific Islands. We keep hearing how this is a development agreement but there can be no development for the Pacific if their industries are wiped out,” continued Mr Wolfenden.

PACER-Plus will see Pacific Island Countries making binding commitments on their import taxes, placing a ceiling on them all as well as planning their lowering over a number of years.

“Governments have an important role to play in supporting Pacific businesses but PACER-Plus will undermine their ability to do so. Binding all import taxes, undermining the ability to ensure local content is used in any investment, and limiting the use of export subsidies robs the Pacific of the policy tools, used by almost all countries to develop, needed to create a supporting business environment in the Pacific. The result will be less opportunities for Pacific enterprises,” stated Mr Wolfenden.

The recent Forum Economic and Trade Ministers Meeting in the Cook Islands set mid-2016 as the deadline for concluding the negotiations on PACER-Plus.

“The Pacific is set to lose significant government funding from cutting out taxes from trade, this impacts the ability to fund those activities the support business like infrastructure, health care and education. We urgently need a suspension of the negotiations, the release of the text and an independent impact assessment of the proposals under PACER-Plus. Only then can we get the full picture about just what PACER-Plus will mean for Pacific livelihoods” concluded Mr Wolfenden.

The next round of negotiations for PACER-Plus will take place in Nadi, Fiji on December 7-11.

Read Brief – PACERPLUS Bad for Business and

MEDIA RELEASE – New brief says Regional trade agreement bad for business

06th of October, 2015

Civil society groups from Australia and the Pacific are concerned about the rush to conclude talks on the regional free trade agreement known as PACER-Plus.

The Australian Fair Trade and Investment Network (AFTINET), Union Aid Abroad-APHEDA, the Australian Council of Trade Unions (ACTU), Friends of the Earth, and Pacific Network on Globalisation (PANG) are holding a rally to coincide with the latest round of talks in Melbourne to call for trade justice for Pacific Islanders.

Kate Lee, Executive Officer of Union Aid Abroad – APHEDA commented that “Australia and New Zealand have a great deal of influence in the region because of their much greater size, wealth and position as aid donors. We are concerned that any agreement will suit the interests of Australia and New Zealand at the expense of the Pacific Island countries. Any agreement must ensure Pacific-centred development that ensures rights for workers, protection of the environment and culture, and respect for human rights.”

PACER-Plus talks were controversially launched in 2009 and are considered the most important trade agreement that the Pacific will negotiate in a decade. The talks are unique in their inclusion of Labour Mobility and Development Assistance in the negotiations.

Ged Kearney, the President of the ACTU added that “we have supported the Seasonal Worker Program because it is a well-regulated program where the workers that come to Australia have to be employed appropriately, they have to be paid appropriate wages, and they have to have an understanding of their rights. We would like to see that the PACER Plus negotiations continue that situation. We don’t want a lessening of the regulation around the program, to ensure that those workers who come here are not going to be subject to exploitation when they arrive.”

Pat Ranald from the AFTINET stated that “the threat of rising sea levels from climate change is more urgent than a free trade agreement, and Australia should heed the calls of Pacific Islanders to take a lead in reducing carbon emissions.”

There are concerns for what the outcome of PACER-Plus will mean for Pacific livelihoods, government revenue, access to essential services and ability to determine their own development.

Union Aid Abroad – APHEDA, AFTINET, the Pacific Network for Globalisation (PANG), Friends of the Earth, and the ACTU are calling for the immediate suspension of the negotiations, the release of the negotiating texts to undertake a human rights impact assessment and respect for the rights of Pacific workers.

The rally will take place at 12:00 noon, Wednesday 7th October, outside the Hotel Grand Chancellor 131 Lonsdale St, Melbourne.

Ends//

Media contact:
Phone: +61401045
Adam Wolfenden,
Pacific Network for Globalisation

AidWATCH & PANG

Joint Press Release

23rd September 2019

Civil Society Organisations have had their fears about the impacts that regional trade talks will have on development prospects for the Pacific, confirmed with the leaking another chapter of the agreement. The chapter, titled “Development Assistance and Economic Cooperation”, considered one of the two most crucial areas of negotiations for Forum Island Countries (FICs), outlines the framework for assistance to be provided to FICs if they agree to conclude the regional free trade negotiations, known as PACER-Plus by 2016.

Controversially launched in 2009, PACER-Plus is seen as one of the most important trade negotiations for the Pacific in a decade. As part of including a ‘development’ component the Pacific have insisted on the inclusion of labour mobility and development assistance in the talks, the two areas of most interest to the Pacific Countries.

For seven years, negotiations have crawled along, buoyed only by the aggressive instance of Australia and New Zealand to lock down a legally binding agreement. Forum Island Countries have been reluctant with Papua New Guinea threatening to exit negotiations citing few, if any, benefits to them. Whilst Fiji having just rejoined is considering in detail whether the current text will hold any benefits for Fiji.

“This chapter was seen by Pacific countries as one of the key areas of benefit under PACER-Plus yet this chapter confirms that the Pacific are having to forgo their ability to determine their economic future in exchange for voluntary commitments from Australia and New Zealand to help implement the agreement plus some extra bilateral aid” commented Adam Wolfenden, Campaigner from the Pacific Network on Globalisation (PANG).

“This agreement is a Trojan horse to increase access to Pacific markets despite the fact that Australia and NZ already disproportionately benefit from current trade flows. It is a well known fact that ‘national interest’ is a key part of Australia’s aid program and the proposals made by Australia in this text just show how determined they are to control how the Pacific makes decisions about its development,” stated Thulsi Narayanasamy, Director of AID/WATCH, Australia’s independent watchdog on its aid program.

The text contains a Pacific proposal calling for a dedicated “Aid for Trade” fund to be administered through the bilateral aid programs of Australia and New Zealand. Aid for Trade encompasses a large number of activities including infrastructure initiatives, upgrading customs procedures, training for officials, and regulatory reform.

“Australia and New Zealand have existing Aid for Trade programs and Australia has already stated its targets for increasing this type of aid. It appears that the FICs are in the position of having to sign a trade agreement, an agreement that undermines their ability to develop, just to get a few extra aid dollars. That’s not development by anyone’s definition,” added Ms Narayanasamy.

One contentious proposal under the chapter is that Pacific nations would need to provide a contribution to any projects funded under the Aid for Trade fund. This allows the possibility of projects to not be funded by Australia and New Zealand if FICs can’t afford to also contribute.

“It is shameful see Australia foisting this agreement on the Pacific and to then turn around and keep attempting to limit the ways it should contribute. The text shows Australia trying to leave any future support to only being possible if there are ‘available resources’. Asking the Pacific nations to contribute to any additional projects funded throws away the veil that this was a development agreement” continued Ms Narayanasamy.

There has been a groundswell of opposition to the proposed agreement with Pacific Islanders and Civil Society groups rallying behind the Tabu PACER-Plus campaign. The next round of PACER-Plus negotiations will be taking place in Melbourne on October 7-9 with demonstrations expected.

“We know that this chapter has now been agreed upon but we don’t know how these issues have been resolved. We continue to demand that the negotiations be suspended, all chapters made public and a human rights impact assessment undertaken,” concluded Mr Wolfenden.

The leaked text can be accessed at: PacNEWS

For more information:
Adam Wolfenden
Campaigner, PANG
Ph: +61 401 045 536
E: campaigner@pang.org.fj

Thulsi Narayanasamy
Director, AID/WATCH
Ph: +61 405 801 943
E: Thulsi@aidwatch.org.au

Media Release – Text shows PACER-Plus letting Pacific down on development

Draft text of the Chapter on Development and Economic Co-operation – PACER Plus

By Online Editor
20/09/2015, Fiji

10^th Intersessional Meeting

Discussions on Development Assistance

Note:

This paper contains clean copy draft text incorporating outcomes of the 9^th Intercessional Meeting of PACER Plus officials.

Text that is not agreed is in square brackets and attributed as follows:

• “AU:”for text tabled by Australia;
• “FIC:” for text tabled by OCTA/FICs; and
• “NZ:”for text tabled by New Zealand.

Tex that is not agreed is as follows:

• Blue for text tabled by Australia;
• Red for text tabled by OCTA/FICs; and
• Olive green for text tabled by New Zealand.

Source: PacNEWS

1 September 2015

Leaders must urge Trade Ministers to act on trade impact assessment

Civil society organisations from across the Pacific welcome the recommendation by the Special Sub- Committee on Regionalism (SSCR) and endorsed by the Forum Officials Committee (FOC) for the immediate release of negotiating text of regional free trade talks, known as PACER-Plus to allow for comprehensive input by civil society organisations and to properly fund social, cultural, environmental, and human rights impact assessment to determine the impacts of any proposed outcome.

“We are calling on Forum Leaders to direct their trade ministers to intervene and undertake a human rights assessment of PACER-Plus as early as the next intersessional, scheduled for the first week of October in Melbourne, Australia, where negotiations will be further progressed. This agreement will impose limits on what governments can do in the name of development yet we haven’t seen any discussion about what the impacts will be for people, the environment, health, culture, and jobs.” commented Maureen Penjueli, Coordinator of the Pacific Network on Globalisation (PANG).

An open letter released in May targeting trade ministers has largely been ignored both by the Office of the Chief Trade Advisor (OCTA) as well as trade ministers from the respective countries. The open letter signed by over 30 Pacific civil society organisations and hundreds of individuals from across 24 island countries and territories represents a significant percentage of people who have expressed serious concern at the direction, pace, content and process for consultation.

The signatories have called for the immediate suspension of negotiations for PACER-Plus, the release of the negotiating text and a human rights impact assessment on that text. The endorsement by Forum leaders will give political impetus and direction to the negotiating machinery of PACER-Plus.

“The open letter continues to resonate today and gain support from people across the region and that indicates that this is a sentiment that is not going to go away. People want to know and people deserve to know what this secret deal is going to mean for them. In addition CSOs are concerned that the democratic processes of decision making by our respective parliaments have also been kept out by the secrecy of negotiations” added Ms Penjueli.

“Releasing the text is not without precedence. The World Trade Organisation does it regularly on negotiating issues and the Free Trade Area of the Americas (FTAA) had the text released three times. The FTAA was successfully stopped because people didn’t like what they saw. According to the free trade supporters such as the OCTA we have nothing to fear from PACER-PLUS, if so then they have nothing to hide,” continued Ms Penjueli.

A recent UN expert panel, including amongst others the special rapporteurs on right to food, rights of indigenous peoples, and cultural rights, recommended that all draft treaty texts be published for people to consider and human rights impact assessments undertaken for all existing and proposed trade agreements.

Noelene Nabulivou of Diverse Voices and Action for Equality and Pacific Partnerships on Gender, Climate Change and Sustainable Development (PPGCCSD) noted that “we need gender, social equity and economic justice as clear and consistent policy framework within which to pursue sustainable production, consumption, and distribution patterns, and to adequately deal with the challenges ahead of our region. For just and effective policy, this requires strong ex-ante and other human rights, environmental and social impact assessments applied to all trade and development agreements, including the proposed PACER-Plus.”

Dr Hugh Govan who works with a network of communities and NGOs that manage coastal fisheries resources around the region (LMMA Network) says “hasty moves towards free trade agreements are of grave concern and could seriously affect livelihoods and health of island communities. It is a priority for donors and island governments to invest much more in stronger environment and fisheries departments with much more emphasis on sustainable management of inshore fisheries and checks and balances on development, in particular Environmental Impact Assessments and the monitoring of these to ensure sustainable development.”

Launched amid controversy in 2009, the PACER-Plus negotiations are scheduled to be completed by July 2016.

“The time for Leaders to act on this is now. We keep hearing about how much progress is being made in the talks and the plan to wrap up text-based negotiations by the end of the year. We really can’t wait any longer as it will soon be too late to make any difference,” concluded Ms Penjueli.

The next round of PACER-Plus negotiations is scheduled to take place on October 7-9 in Melbourne.

Ends//

Media Release – Leaders must urge Trade Ministers to act on trade impact assessment

The full open letter can be viewed at www.pang.org.fj

For more information:

Maureen Penjueli
Pacific Network on Globalisation
Ph: +679 331 6722
Email: coordinator@pang.org.fj

Dr Hugh Govan
LMMA Network
Ph: +64 992 1224
Email: hgovan@gmail.com

Noelene Nabulivou
Diverse Voices and Action for Equality (DIVA)
Pacific Partnerships on Gender, Climate Change and Sustainable Development (PPGCCSD)
Ph: + 679 9809006
Email: noelenen@gmail.com

By Pacific Network on Globalisation

03rd August 2015

Free Trade Benefits Remain Unconvincing

A Pacific regional trade network remains unconvinced of the benefits of the free trade agreement – known as PACER-Plus – as the latest round of negotiations begin today.

The Pacific Network on Globalisation (PANG) says that the despite being sold as a ‘development agreement’ it is the Pacific that is shouldering the burden of legal commitments in the talks whilst Australia and NZ offer voluntary commitments.

“The Pacific have agreed to make binding legal commitments on their sovereignty, limiting their ability to determine how and what type of investment comes into their countries, undercutting policies that maximise the benefits for local workers are just some of the examples of how bad this deal is for Pacific Island countries. Australia and New Zealand on the other hand offering only voluntary commitments can opt out on their promises of access for Pacific workers and extra aid money at will” commented PANG Campaigner Adam Wolfenden.

The recent announcement by Australia of the removal of the cap on its Seasonal Worker Program has been sold by the Office of the Chief Trade Advisor (OCTA) as a positive sign in the context of the PACER-Plus negotiations and have “re-enegised” the talks.

“The claims by the OCTA that there is more energy back in the talks and possible momentum to conclude a deal are forgetting one crucial factor – they aren’t bringing the people along with it and perhaps even some governments remain unconvinced. Churches, environment groups, gender rights activists, trade unions, farmers, academics, indigenous groups, youth groups and more have all called for the immediate suspension of the talks and the releasing of the negotiation texts so that impact assessments can be undertaken to determine the real value of PACER-Plus” added Mr Wolfenden.

Prior to the last round of negotiations on PACER-Plus an open letter signed by over 30 civil society organisations representing a major part of Pacific people voices was released and sent to all Forum Countries calling for the immediate suspension of the talks, the release of the text and a human rights impact assessment of what is proposed under PACER-Plus.

The Chief Trade Advisor to the Forum Island Countries, Dr Kessie, has recently stated that if PACERPlus was to increase the Pacific’s share of global trade from its current amount of 0.05% to 0.5% in would result in a US$50 billion increase in annual income. No research was release to explain how PACER-Plus could increase Pacific trade by 1000% and whether or not that increase would be for the Pacific’s benefit.

Mr Wolfenden continued “it is clear that the people don’t want PACER-Plus and that is why we’re seeing the proponents of the agreement make ridiculous assertions of the proposed benefits without providing any evidence or research that supports their figures. They hope that if they repeat their numbers often enough people will accept them but that isn’t the way to have a discussion about the future of the Pacific’s economic development”.

The PACER-Plus negotiations were controversially launched in 2009 and include the 14 Forum Islands
Countries including Australia and New Zealand. The talks are aimed to be concluded by the end of
2016.

For more information:
Adam Wolfenden
Campaigner
Email: campaigner@pang.org.fj
Twitter: tabupacerplus
Facebook: Tabu PACER Plus

Joey Tau
Media Officer
Ph: +679 3316 722