Draft text of the Chapter on Development and Economic Co-operation – PACER Plus

Article 1

Scope and Objectives

1.       The Parties reaffirm the importance of ongoing development and economic cooperation between them, including existing bilateral and regional cooperation [NZ: through the Australian and New Zealand Aid Programmes that supports the expansion and diversification of export of the Forum Island Countries and their increased participation in international trade.]

2.       [NZ: The Parties agree to improve trade and investment related assistance through their existing development and economic cooperation programmes, taking into account the priorities of the Forum Island Countries including in the following areas:

 

(i)                 Supply-side constraints to strengthen market access opportunities for the Forum Island Countries under this Agreement;

(ii)               trade development, including strengthening domestic services capacity; and

(iii)             trade and investment related regulatory capacity building.]

 

[AU: The Parties agree to improve and complement their existing development and economic cooperative partnership in trade and investment related areas where they have mutual interests, taking into account areas of utmost importance to the developing country Parties] [PICs: with a view to assisting them to enhance their participation in international trade and achieve economic growth and sustainable development]. In elaborating areas of partnership, account shall be taken of the different levels of development and capacities of the Parties.

3.       The parties take due note of the provisions in various Chapters of this Agreement that [AU/NZ: encourage and facilitate cooperation and consultation] PICs: highlight the capacity constraints of the developing country Parties and agree to adopt effective measures to address them comprehensively within a reasonable period of time].

Taking into account the capacity constraints of the developing country Parties and the provisions in the various Chapter that encourage and facilitate cooperation and consultation, the Parties agree to adopt targeted measures to address the capacity gaps in the developing country Parties’.

4.       Development and economic cooperation under this Chapter shall support implementation of this Agreement [AU/NZ: through trade and investment related activities specified in the Work Programme] [PICs: and facilitate the greater participation of the PICs in international trade.
The Work Program established within the framework of this Chapter shall assist the developing country Parties to implement their obligations under this Agreement.

 

Broader trade-related support to assist the PICs to enhance their participation in international trade shall be provided through the aid programmes of Australia and New Zealand. To that end, new and additional funding, to be channelled through a dedicated Aid for Trade fund in the aid programmes of Australia and New Zealand, shall be agreed bilaterally between Australia and New Zealand and individual Pacific Island Countries. The range of activities to be implemented to support the greater participation of the PICs in international trade shall include the following:

 

(i)                 promoting trade development through targeted measures in response to the need identified by the developing country Parties;

(ii)               addressing supply-side constraints to strengthen the trade-related infrastructure of the developing country Parties; and

(iii)             assistance to develop and strengthen regulatory capacity building.

(iv)              adjustment assistance to adapt to the new condition of competition;]

Article 2

Definitions

For the purpose of this Chapter:

(a)    Implementing Party or implement parties means, for each component of the Work Programme, the Party or Parties primarily responsible for the implementation of that component; and

(b)   Work Program means, the programme of development and economic co-operation activities [AU/NZ: organised into components, mutually determined by the Parties [NZ/PICs: and based on the needs specified by the PICs] prior to the entry into force of this Agreement and revised by the Parties by mutual agreement pursuant to the mechanism in Article 7 after entry into force.

(c)    Development assistance coordination agency means the agency of a Party with primary responsibility for the coordination and management of Official Development Assistance within that Party.

Article 3

Resources For the Work Program

1.       Recognising the development gaps between the Parties, [AU: the Parties shall contribute appropriately to the implementation of the Work Program.] [PICs/NZ: the developed country Parties shall devote adequate financial resources to ensure effective implementation of the Work Program which would assist the developing country Parties with the implementation of their obligations under the Agreement. Developing country Parties, in a position to do so, may contribute financially or in-kind to the implementation of the Work Program].

2.       In determining the appropriate level of contribution to the Work Programme, the Parties shall take into account:

[PICs: (a) the nature of the development priorities of the Forum Island Countries

(a)    different levels of development and capacities of the Parties;

(b)   any in-kind contributions that Parties are able to make to Work Program components;

(c)    any contributions that non-Parties are able to make to Work Program components, directly and indirectly; and

(d)   that the appropriate level of contribution enhances the relevance and sustainability of cooperation, strengthens partnerships between Parties and builds Parties shared commitment to the effective implementation and oversight of Work Program components.

Article 4

Development and Economic Cooperation Work Program

1.       Each Work Program component shall:

(a) be trade-or investment-related and support the implementation of this Agreement,

(b) be specified in the Work Program;

(c) [PICs: Wherever possible] [AU: involve a minimum of two Forum Island Country Parties, Australia and/or New Zealand] ;

(d) address the [AU: mutual priorities of the participating Parties; and [NZ/PICs: needs of the Forum Island countries as mutually prioritised by the participating countries];

(e) Wherever possible, avoid duplication in relation to, and build on and complement existing economic cooperation activities and delivery mechanisms.

2.       The description of each Work Program component shall specify the details necessary to provide clarity to the Parties regarding the scope and purpose of such component.

 

 

Article 5

Focal Points for Implementation

 

1.       Each Party shall designate a focal point for all matters relating to the implementation of the Work Program and shall keep all Parties updated on its focal point’s details.

2.       The focal points shall be responsible for overseeing and reporting on the implemention of the Work Program in accordance with Article 6 (Implementation and Evaluation of Work Program Components) and Article 7 (Review of Work Program), and for responding to enquiries from any Party regarding the Work Program.

3.       The focal point of a Party shall coordinate on the Work Program with the development assistance coordination agency of that Party.

Article 6

Implementation and Evaluation of Work Program Components

1.       Prior to the commencement of each Work Program component, the implementing Party or Parties, in consultation with relevant participating Parties, shall develop an implemention plan for that Work Program component and provide that plan to each Party.

2.       The implementing Party or Parties for a Work Program component shall use existing mechanisms for the implementation of that component, unless otherwise agreed by those Parties.

3.       Until the completion of a Work Program component, the implementing Party or Parties shall regularly monitor and evaluate the relevant component and provide periodic reports to each Party including a final component completion report.

Article 7

Review and Modification of Work Program

1.       At the direction of theJoint Committee, the Work Program shall be reviewed within [PICs: two] [AU: three] years after its implementation and thereafter at regular intervals to assess its overall effectiveness [PICs: in terms of assisting the Forum Island Country Parties to implement their PACER Plus obligations in support of the Agreements broader objectives].

2.       The Joint Committee [AU/NZ: may] [PICs: shall, where appropriate] modify the Work Program taking into account outcomes of reviews [AU:,] [PICs: and] priorities

 [PICs: of the Forum Island Countries].

[AU: and available resources].

Article 8

Non-Application of Chapter [..] (Consultations and Dispute settlement)

Chapter [..] (Consultation and Dispute settlement) shall not apply to any matter arising under this Chapter.

10th Intersessional Meeting

Discussions on Development Assistance

Note:

This paper contains clean copy draft text incorporating outcomes of the 9th Intercessional Meeting of PACER Plus officials.

Text that is not agreed is in square brackets and attributed as follows:

  • AU:”for text tabled by Australia;
  • FIC:” for text tabled by OCTA/FICs; and
  • NZ:”for text tabled by New Zealand.

Text that is not agreed is as follows:

  • Blue for text tabled by Australia;
  • Red for text tabled by OCTA/FICs; and
  • Green for text tabled by New Zealand.

Source: PACNEWS

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