Pacific Economist defends proposed regional free trade deal
Updated
One of the region's top economists Professor Biman Prasad says Pacific Island countries have a lot to gain from the proposed free trade deal with Australia and New Zealand, and rather than worrying about the impact of trade negotiations Pacific Island countries should look at how to boost their export sectors.
Presenter Jemima Garrett
Speaker: Dean of the Faculty of Business and Economics at the University of the South Pacific Professor Biman Prasad
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JEMIMA GARRETT: Ever since the PACER-plus free trade agreement between Australia, New Zealand and the Pacific countries was first mooted, it's been creating fear in the region. The University of the South Pacific's Professor Biman Prasad believes most of those fears are unfounded. He says the Pacific islands have huge potential to use the PACER-plus to boost agricultural exports.
PROF. BIMAN PRASAD: If you look at what's gonna happen in Australia and New Zealand, you know, Australia's warming up the demand for food products both in Australia and New Zealand are likely to increase and with better prices as well. Now the issue for Pacific Island countries is how to ensure that we have the capacity to produce those kind of quality agricultural products. We have issues about quarantine, the issues about restrictions from the Australia and New Zealand end. And I'm sure all those things will come into proper perspective in discussion - perhaps between now and the trade negotiations and perhaps during the trade negotiations.
JEMIMA GARRETT: Professor Prasad says to take advantage of what a PACER-plus free trade agreement might offer, the Pacific needs to look at internal issues that have held back exports - issues such as land leases, land tenure and lack of infrastructure. This will require help from Australia and New Zealand.
PROF. BIMAN PRASAD: I think there is a lot of work and perhaps a lot more research and reviews need to be undertaken - at least in the next two years - so the adjustment these countries are required to make can be made. And here I want to say that both Australia and New Zealand ought to look at support right now - until the trade negotiations start.
JEMIMA GARRETT: Biman Prasad, Dean of the Faculty of Business and Economics at the University of the South Pacific. Professor Prasad says a PACER-plus agreement would lead to cheaper prices for consumers and for agricultural tools and machinery. The benefits from improved agricultural exports are likely to flow on and have an impact on the region's biggest industry - tourism.
PROF. BIMAN PRASAD: If we are able and successful in making the agricultural sector productive that could also feed into the tourism industry because really one of the concerns about the tourism industry, especially in Fiji, is that there is a high in food demand and a lot of that import demand is composed of food, which can be produced locally here and which will allow Fiji to improve its retaining capacity in terms of the tourist dollar that's coming to Fiji and other Pacific Island countries.
