Pacific Agreement on Closer Economic Relations ‘Plus’ (PACER-Plus) is re-writing the rules and conditions on how Australia and New Zealand investors and corporations invest in Pacific Island Countries (PICs) and how those countries are able to ensure that i t meets their needs.
There are big dollars involved in investments and services trade between the Pacific and Australia and New Zealand. In 2016, New Zealand sold NZD$278 million of services to PACER-Plus countries (excluding Australia) and describes the new commitments made by the Pacific Island Countries in Services as “commercially significant” and importantly protected against any future deals the Pacific signs with other nations.
It’s important to remember that agreements like PACER-Plus, especially as they relate to investment, are highly controversial and a growing number of countries, including Brazil, India and South Africa are withdrawing from them and developing substitutes that balance commercial interests with regulatory sovereignty and social rights.
Download briefing paper here: Trade in Services brief