Support joint efforts in the fields of standards, technical regulations and conformity assessment procedures, assist in promoting mutual understanding of each Party’s STRCAP measures, and strengthen information exchange and cooperation among the Parties.
The PACER Plus agreements fundamental aim is to reduces barriers to business activities and growth whilst taking into account the significant differences in the sizes and level of development between country partners and the Pacific Island nations.
Reductions in tariffs is critical to this goal with Australia and New Zealand committing to immediately reduce tariffs to zero when doing business with partnering states.
Pacific Island nations also have a commitment to this goal over a 25-year period, with each nation varying its levels of reductions dependent on their circumstance.
The Agreement gives Pacific island nations the ability to source inputs from a various range of countries whilst still qualifying for duty-free entry to Australia and New Zealand. Australia and New Zealand will also assist Pacific island countries upgrade their sanitary and phytosanitary capabilities to meet a greater quality of standards.
From this increased quality standards, it will provide Pacific Island nations the capabilities to reach regional and global markets for products. Attempts at modernizing customs procedures through the Pacer Plus Agreement will further facilitate trade by reducing border costs. Consumers will have access to higher quality goods at a more affordable price, with producers and manufacturers having more access to cheaper inputs enhancing competitiveness.
Through the PACER Plus Agreement is the requirement of all members to extend, immediately and unconditionally the same treatment provided to all non-parties. MFN tariff treatment provides a guarantee of non-discrimination when an FTA partner excludes some goods from liberalisation or has yet to complete its scheduled liberalisation and negotiates an FTA with a third country with liberalisation commitments or faster liberalisation in relation to those goods.
This means that any improvement on deals within party member states will then be benefited throughout all participating members. Should one nation negotiate a free trade agreement, it will then have the accessible benefits for all other member states.
PACER Plus will provide flexibility to members on when they undertake the scheduled tariff reductions and a variety of safeguards. This is based on each countries varying level of resources, geographical isolation and vulnerability to natural disasters. Ways in which flexibility is shown:
All nations entering into the Agreement should provide clear information to businesses trading throughout the Pacific. Each member state should:
The outcome of all these provisions will provide a dynamic area that looks to benefit from laid out provisions. States will enjoy a higher quality of goods, leading to new market access and generating competitiveness on the global scale.
The MFN benefits the system holistically giving each partner access to all benefits acquired. With flexibility giving an equitable share of obligations dependent on each partners ability to meet requirements.Â
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