Australia asked to explain its stand on PACER Plus trade negotiations

Updated April 13, 2011 17:20:30

A leading Pacific trade lobby group says Australia needs to explain its position on the proposed PACER Plus Trade agreement with the Pacific Islands.

On Tuesday, Australia's Trade Minister, Craig Emerson, launched Australia's new trade policy.

The policy sets out Canberra's trade priorities but made no mention of PACER plus.

It has now emerged that Australia's approach to PACER plus negotiations is 'under review' by the department of Foreign Affairs and Trade.

That may surprise many Pacific countries who have complained for some years that Australia has been driving the PACER Plus agenda too hard and too fast.

Neither Mr Emerson nor Australia's Parliamentary Secretary for Pacific Island Affairs, Richard Marles, were available to explain what is happening with the review.

Maureen Penjueli, the Co-ordinator of the Pacific Network on Globalisation is speaking to us here about news that Australia is reviewing its approach to PACER Plus.

Presenter: Jemima Garrett
Speaker: Maureen Penjueli, the Co-ordinator of the Pacific Network on Globalisation

PENJUELI: I think we are, like a lot of people at the moment, quite perplexed by the fact that PACER Plus hasn't featured as a priority in the recent Australian Trade Policy Review. We know that the push for a WTO compatible free Trade agreement with Island countries comes from Australia and New Zealand and so not seeing PACER Plus appear in Australia's Trade Policy review is ..we are quite perplexed by that.

GARRETT: Australia has spent a lot of time and energy trying to convince Pacific governments to be part of PACER Plus negotiations. Pacific nations are just now starting to come on board. Do you think they will be angry that just when they start to move, Australia may change direction?

PENJUELI: Well, I think so. We have to go back to look at the evidence before us and it's been very clear that Australia has been quite aggressive in pushing to launch PACER Plus negotiations, in 2009, even when Island countries were calling for more time for national consultations and research. So everything that we have seen to date has indicated that Australia is still committed to negotiating a free trade agreement with its Island neighbours. If there is indeed a change in direction and, indeed a review, .. I mean this review comes in from the cold. We weren't very sure when this is being done and as to why its is being done. So I think, if indeed there is a change of heart from Australia, that should be signalled quite clearly to our Island governments and I think it should be done now rather than hearing these things coming through via the media and other ways. So I think it is quite concerning. And island countries will be concerned about a change of heart, now, particularly considering they have been pushed. Some of the Island countries are just starting National consultations now on PACER Plus so I think we really have got to hear and see from Australia what's their position on PACER Plus now.

GARRETT: Indeed Solomon Islands is just beginning its national consultations this week and those consultations take a lot of time and money. Does the review of Australia's approach to PACER Plus throw those consultations into question?

PENJUELI: Well, I think that it does in some ways because I think the Island countries need to be formulating their position. At the moment they are, and as I said before, the push for a WTO compatible free trade agreement is being pushed by Australia and New Zealand. From an Island context I think they have signalled quite clearly the type of partnership that they are looking for with Australia and New Zealand. They are looking for great flexibilities, duty free market access for goods into Australia and New Zealand,..to be treated quite differently, because a lot of our Island countries are not members of the WTO and are unlikely to be members of the WTO in the forthcoming future, therefore, would like to see some flexibility offered for some of our Island countries. Island countries have also signalled that they would like to see an opt-in, opt-out type clause where they can negotiate on what they are comfortable with and certainly what they are not comfortable with. And so I think from the Island countries perspective, they have sent quite clear signals in terms of the type of relationship that they would like with Australia and New Zealand. The fact that this review is coming up now and through informal channels is quite worrying. We need to be very clear whether Island countries can have a say. NGOs can have a say in this review.