Call to review SPARTECA

AVIATION / SHIPPING in the Pacific

Forum Line’s NZ chief wants change to trade agreement

THE New Zealand director of Pacific Forum Line, Peter Kiely, has called on his government to seriously consider changing the 12-year-old South Pacific Regional Trade and Economic Cooper ation Agreement (SPARTECA), Signed by the heads of government at the 11th South Pacific Forum meeting at Tarawa in 1980 the agreement allows for duty free access on a non-reciprocal basis to the Australian and New Zealand mar kets.

Mr Kiely says it is in New Zealand’s interest to carefully reconsider the re quirements for unrestricted access to New Zealand. At present goods must qualify under the 50 per cent local content criteria to qualify for such access.

PFL and other shipping companies vessels on north-bound routes are full

with New Zealand exports. Returning home they are by and large empty. “This just doesn’t make economic sense,” he says, Mr Kiely said Pacific islands’ complete reliance on the export ofproudce was not wise because of cyclones and pests.

“Western Samoa is presently suffering taro leaf blight which may be impossible to eradicate and a fruit fly scare has resulted in a current ban on Fijian produce,” The trade imbalances in New Zealand’s favour are not in New Zea land’s long term benefit. “Just as New Zealand has adjusted to a trade shift

away from Europe to Asia so too must the Pacific adjust,” he said.

“There are currently 200,000 Pacific islanders in New Zealand and this population is expanding in Auckland at 11 times the national average. New Zealand needs to help the Pacific islands economies achieve sustainability,” ac cording to Mr Kiely. “If simply by reviewing the local content criterai island manufacturers would be assisted then that should be done,” he said.

The answer is to have a “substantial transformation” rule rather than a specific percentage for local content”.

“This would allow Pacific islands to import raw material such as fabrics from Asia for processing. Costs in the Pacific islands are lower and therefore potential lost exports could be higher,” he said.

Unless New Zealand and Australia provide an incentive to the Pacific islands to become more economically self ef ficient the islands will become even more dependent would be a future problem for New Zealand,” he said. □

Martin Tiffany Fua Kavenga: Pacific Forum Line vessel