NO.037

AUSTRALIA RATIFIES THE PACIFIC AGREEMENT ON CLOSER ECONOMIC RELATIONS (PACER)

Australia has edged closer to the goal of regional free trade in ratifying

an agreement for closer economic relations with island countries in the Pacific,

Treasurer Peter Costello and Trade Minister Mark Vaile announced today.

Mr Costello presented the instrument of Australia’s ratification of the Pacific

Agreement on Closer Economic Relations (PACER) to the Secretary-General of the

Pacific Islands Forum, Noel Levi, today at the Forum Economic Ministers Meeting

in Port Vila, Vanuatu.

“Australia has unambiguously and enthusiastically supported this agreement

from the outset, as a full member of the Forum community and a major economic

partner of all its members,” Mr Vaile said.

“The PACER will advance the region significantly towards the goal of regional

free trade. It will increase economic opportunities and competitiveness through

more effective regional trade arrangements.”

Forum leaders in October 1999 instructed officials to negotiate a free trade

agreement between Forum island countries, with Australia and New Zealand to

be included in appropriate ways. The Agreement was signed by most Forum members,

including Australia, at the Pacific Islands Forum leaders meeting in Nauru last

year. Australia, New Zealand, Fiji, Cook Islands, Samoa and Tonga have since

ratified the Agreement and only one more ratification is required for the PACER

to enter into force.

“I encourage all Forum countries to ratify the agreement as soon as possible,”

Mr Vaile said.

Mr Costello said the agreement represented a significant achievement for all

Forum members.

“It is the culmination of solid regional efforts over the past years

to strengthen the ability of Pacific island states to advance and defend their

economic and trade interests in a globalised economy,” Mr Costello said.

“The strength of the agreement is that it recognises the particular circumstances

of individual island states and the need for an interim adjustment period as

appropriate, and gives the region enhanced credibility in trade matters, notably

in Forum island countries’ impending trade negotiations with the EU.”

The PACER agreement is complemented by the Pacific Island Countries Trade Agreement

(PICTA), open to island states only, concluded in parallel with the PACER.

3 July 2002

Contact: Niki Savva (Office of the Treasurer)

(02) 6277 7340

Mark Croxford (Office of Minister for Trade)

(02) 6277 7420