PNG paper still on agenda on trade ministers meeting

PAC NEWS

Moves by Papua New Guinea to propose drastic changes to the future management of the Pacific ACP’s trade negotiations with the European Union is still on the agenda of the trade ministers meeting but any immediate decision has been put on hold. This was revealed at a Melanesian Spearhead Group official’s caucus in Apia Wednesday night, in preparation for the two day ministerial session beginning Thursday. “PNG’s paper is still on the table but it will be up to the ministers if they want any substantiative discussions on its recommendations. Otherwise, the paper will be noted in the outcomes document, said a number of trade officials contacted by PACNEWS.

Item 29 on the trade officials outcomes document obtained by PACNEWS said ‘the meeting agreed to PNG’s proposal on the future management of the EPA negotiations to be considered out of session in preparation for the ministers meeting.’ “It’s sad that PNG wanted more discussions out of session on the paper when it had sent out a special envoy, Ambassador Lucy Bogari to hear out the views of members. “At least, the paper is on the record and has brought out some issues that the Pacific Islands Forum Secretariat can work on to progress the EPA negotiations, said a trade official who is involved in the negotiations. The PNG country paper, among other things recommended an immediate transfer of EPA negotiations and related Economic Development Fund (EDF) resources to the Office of the Chief Trade Adviser (OCTA) based in Port Vila, Vanuatu.

“This is done to restore the momentum of the EPA negotiations and ensure its timely and satisfactory conclusion. PNG’s private sector needs to secure trade rules to increase production, increase investment and create jobs for our people. The longer the EPA negotiation is delayed, the longer we keep the private sector in suspense, said the paper. It also claims ‘poor management of the fisheries negotiations puts at risk the millions of dollars in investment and thousands of jobs.’

The PNG country paper follows concerns raised by former foreign affairs and trade minister, Sam Abal in October 2010. The letter directed to the PACP Lead Spokesman on EPA, Joachim Keil, expressed serious concerns at the overall lack of significant progress on the EPA negotiations. Minister Abal’s letter noted lack of trust and confidence in the Pacific Islands Forum Secretariat (PIFS) to provide Pacific ACPs with satisfactory technical analysis on issues under negotiations.

In addition, the minister questioned the ability of PIFS to advocate PACP’s trade interests due to conflict of interest by those leading EPA work at the Suva Secretariat. “It is therefore not fair to the PACPs to have someone whose interest might not be 100 percent aligned with their positions leading the EPA work, Minister Abal said. The country paper, now submitted and noted by trade officials reminded PACP Trade Ministers that ‘they are at liberty to transfer it to another organisation if they feel that PIFS is unable to perform the role effectively.’ OCTA, established in March 2010 is headed by Dr Chris Noonan, who previously was legal adviser to the Forum Secretariat on EPA negotiations.

Its role was to provide independent advice and support to PACP members in the Pacific Agreement on Closer Economic Relations (PACER) negotiations with Australia and New Zealand. “The transfer of EPA to OCTA will enable the PACPs to be guided by someone who could advance their negotiations given his familiarity with trade issues and appreciation of the PACPs trade interests. “PACPs has the confidence and trust in Dr Noonan to genuinely represent their interests in EPA negotiations, said the PNG paper. However, the paper acknowledges that if EPA was transferred to OCTA, a number of issues need to be addressed – the legal structure of the Port Vila based organisation and funding for EPA related work.

Currently, OCTA is funded by Australia and New Zealand, who the PNG paper claims also have governance influence over the structure of the office. Both Australia and New Zealand have jointly committed AUD$1.5 million (US$1.3 million) to fund the setting up of the office in Vanuatu. “The objectives of Australia and New Zealand were made clear at the Forum Trade Ministers Meeting in Pohnpei in 2010 that they do not wish to see that OCTA become a legal institution and that it be linked to PACER Plus only. “The attempt to confine OCTA to PACER Plus matters only is the major difference between Australia and New Zealand and the FICs on the legal structure, the PNG paper said.

One of the few reservations expressed by some PACP members is the need for OCTA to have some legal structure first before it is given added role in the EPA negotiations. On funding, the proposal suggests that EDF funds earmarked for EPA related work be transferred to OCTA if PACP leaders agree to PNG’s paper. The paper will be submitted to the ministerial session Friday morning and it will be up to Papua New Guinea to ask for substantiative discussions and make recommendations to PACP Leaders.

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