Transcript
EDWINI KESSI: Well I have had the chance to read the text of this statement and my understanding is that he's saying that if Australia and New Zealand don't exercise flexibility on the issues raised by Fiji and other countries, then they are going to withdraw. So, from my perspective they are not saying that are withdrawing, but assuming that Australia and New Zealand do not exercise flexibility on the issues of importance to them, then they will consider withdrawing from PACER-Plus. That's my understanding.
JAMIE TAHANA: Still a setback nonetheless though in what only one-two weeks ago you agreed the draft legal text. How does this set you back if Fiji wants Australia and New Zealand to budge on their positions?
EK: Well as we say in trade negotiations, nothing is agreed until everything is agreed. So although we have reached an agreement in principal on the remaining issues in trading goods, however I think it's open to any party to request a reopening of the text. So, until it is formally signed it will be within the rights of any party to request the others to revisit some issues.
JT: Does this delay the process though, because you were hoping to have it signed, sealed etc by the end of the year?
EK: I don't think it would affect the timetable assuming that there is a convergence of views because we are not talking of many issues, there are very few issues, and assuming that there is convergence that could be dealt with very rapidly.
JT: Very few issues but they must be very big issues if Fiji is considering withdrawing.
EK: It depends on how you look at it but I think one issue is relating to what we call the MFN clause, and the other is the infant industry. I think with flexibility on both sides we should be able to have an agreement which would appeal to all the parties.
JT: What's the MFN clause?
EK: The MFN [Most Favoured Nation] clause basically relates to, if you give a benefit or advantage to another trading partner, whether you should extend it to other PACER-Plus parties. It's not a very difficult issue I think. As I said, with flexibility on both sides, we should be able to come to an agreement on this issue.
JT: And how likely is it that Australia and New Zealand, clearly the big players in this, will be flexible?
EK: Well I think Australia and New Zealand have always indicated that they're prepared to be flexible if Fiji tables its market access offers.
JT: So as far as you're concerned, Fiji is till part of the negotiations for PACER-Plus?
EK: From the statement I read, yes. What they are basically saying is that they are not withdrawing, not just yet but they look forward to having constructive engagement with Australia and New Zealand on the issues which are being raised by Fiji.
JT: Nonetheless though such a public announcement must be a setback and you've already lost PNG. Fiji the second largest economy is now threatening to walk, Vanuatu has expressed criticisms. Does this put PACER-Plus in treacherous waters?
EK: Trade negotiations are always very controversial. As we say, trade is not a zero-sum-game, it involves all the parties making sacrifices and I don't think the remaining issues are very difficult. I'm hopeful that we should be able to reach an agreement which would serve the interests of the Forum aligned countries very well.
