Pacific's Pacer Plus deal close

Transcript

The Pacific's Chief Trade Advisor says significant progress has been made with the Pacer Plus trade agreement and it should be concluded by September next year.

Negotiations have been underway on the trade in goods and services deal, involving New Zealand, Australia and the island countries, for 8 years.

Dr Edwini Kessie is expecting more progress when the parties meet in Apia in two weeks.

He says the advance comes with Australia this month committing to lift the cap on its seasonal employment scheme, and to extend it to the entire agriculture sector nationally and to the tourism sector in some areas.

He says Australia has also extended the labour scheme to include all 14 island countries negotiating the Pacer Plus deal.

EDWINI KESSIE: That has re-energised negotiations. New Zealand has also increased the cap and it is also looking at the possibility of making further improvements to the RSE. The two countries have also agreed to the forum island countries to provide them with assistance to address supply-side constraints which have prevented them from taking advantage of trade agreements. So I think because of the movement of labour mobility and development assistance, this has put us in a good position to conclude the negotiations.

DON WISEMAN: Yes, but those labour arrangements, in terms of seasonal labour, they're quite rigid aren't they? It's for a limited period of time. You want something broader than that, you want unfettered mobility don't you?

EK: Um, no that has never been our demand. I think for the labour mobility it is between six to nine months; nine months for some of the countries, so this is basic seasonal temporary work. However, we should also bear in mind that in the context of the negotiations in trading services, countries can give commitments which would allow people from other countries to stay up to five years depending on their position, whether they are senior managers or business executives. But that will be under the trading services chapter, but the labour mobility factor only focuses on unskilled work. So that is not permanent, it's temporary, and it's between six and nine months.

DW: It all sounds as though it's very amicable now. There have been times when things haven't been so sweet have they?

EK: I think initially, as I said, the major stumbling block was labour mobility. But with the announcement by the government of Australia and also New Zealand looking at ways to improve the RSE, I think that's really, these two have changed the dynamics and that is why I think we are in a position to conclude the negotiations as soon as possible.

DW: I know one of the things that's made New Zealand and Australia hesitant has been that any benefit that they offer to Pacific countries, they'd be also forced to extend to Europe once EPAs (Economic Partnership Agreements) are signed.

EK: The argument was that if we were to have commitments to labour mobility included as part of the Pacer Plus agreement then that would trigger obligations of Australia and New Zealand, and the FTAs they are negotiating, or future FTAs. So there's broad agreement among the parties that the commitments on labour mobility would not be part of Pacer Plus, it would be an arrangement, so it would be like a side agreement, not part of an agreement. So that way we avoid any potential problems whereby Australia and New Zealand may be forced to give what they have given to the Pacific Island countries to other trading partners.

DW: So that means that when the agreement is announced, there won't be any reference to labour mobility in it?

EK: There would be, but the commitments on labour mobility would not be an integral part of the agreement. So it would exist separately.

DW: And that's acceptable to the island countries like that?

EK: They have discussed that and I hope that agreement will be reached on this issue at the meeting in Samoa.