Aerial shot of Suva Port [File Photo]

Fiji is currently reevaluating its participation in the PACER Plus agreement in light of a significant trade deficit exceeding $1 billion with Australia and New Zealand.

This reconsideration was highlighted by Minister for Trade Manoa Kamikamica during the PACER Plus consultation held in Suva.

Australia and New Zealand are key trading partners for Fiji, and the government is now focused on analyzing how PACER Plus might affect this crucial trade relationship.

The PACER Plus agreement, which was previously suspended due to fairness concerns, is under review by the coalition government.

Kamikamica says the central question is whether joining PACER Plus will benefit Fiji by enhancing exports or will it increase the existing trade deficit by boosting imports from these neighbouring countries.

“If PACER Plus increases trade, whose trade will it increase, will it be Fiji’s exports, like fresh vegetables, root crops, kava, and garments, and will the subsequent trade deficit become lower and more manageable? Or will exports of Australia and New Zealand increase, And Fiji’s trade deficit will become even larger.”

Permanent Secretary for Trade Shaheen Ali emphasizes the importance of thorough and effective consultations in this process.

“These consultations are more than just a gathering of stakeholders. We want to harness your collective expertise and insights. We want to ensure that your voices are heard as we undertake this comprehensive assessment of PACER Plus. We want this environment to be open, and free from emotion.”

The consultation session, which included over 50 government representatives and various partners from the private and public sectors, provided a platform for discussing the implications of the agreement.