Cooks and Samoa join forces

By Florence Syme-Buchanan

COOK Islands’ women wear their valuable black pearls everywhere and Samoan women may soon be doing the same if efforts to set up trade links between the two island states work out.

The Cook Islands, through the govern ment’s Development Investment Board, is going all out to set up trade links with Samoa, something that could see much needed dollars injected into the local econ omy. Rohan Ellis of the Cook Islands Development Investment Board conserva tively estimates that up to $NZ568,000 could be realised by exporters to Samoa.

“Given the proposed transport links to Samoa from the Cook Islands and the nat ural forces affecting supply and the output of products for export, 1998/99 could engage $NZ568,000.00 worth of export dollars to Samoa”. Ellis bases the estimat ed total export value to Samoa on products that are well established in the Cooks and demanded by the Samoan market.

“Naturally, these figures could improve if extraneous factors could be controlled and output of products increased,” says Ellis. The two Pacific countries are trying to realise a proposal made by a top aca demic in the region that Polynesian coun tries are better off freeing economic exchange.

In a formal proposal, former Cook Islands prime minister and scientist. Sir Thomas Davis told leaders of the region’s seven Polynesian nations that it’s time they stopped acting separately and united to a Polynesian Economic Community. The first step towards establishing Cook Islands - Samoa trade links will be the expected November start of Samoa’s Polynesian Airlines service to Rarotonga, the main island in the Cooks.

Shipping links between the northern islands of the Cooks and Samoa are also in the pipeline with local shipper Tapi Taio keen to expand on the current inter-island service.

The Cook Islands government’s Development Investment Board led a trade mission to Samoa in April to explore trade and investment possibilities.

“This is in line with the regional move towards a “Trade Free Pacific Area” and to pre-empt trade and investment between our two nations in lieu of anticipated ship ping links and airline linlqs”. Ellis believes the mission was a success. Like other Pacific nations, the root crop, taro, is a favourite in Samoa. But that country’s crops were wiped out when they became infected with leaf blight.

Now Samoa wants Cook Islands taro and just about everything else the country grows and protocols are being fast tracked to allow exporting to begin, says Ellis.

Both countries are to review import tar iffs to make inter-country trade easier and more economically viable. The export of Cook Islands black pearls, apparel by local fashion house TAV and other products also look to be definite possibilities for the Samoa market, says Ellis. He is keen to see the Cooks copying Samoa’s successful fishing industry which turns over SUS3O million a year.

In order for reciprocal trade between Samoa and the Cook Islands to begin, three requirements are paramount: this includes the reduction or complete removal of tar iffs on Cook Islands imports into Samoa and vice versa. “This is a major deciding factor for trade,” says Ellis. At present, Samoa’s tariff rates mean black pearls are taxed at around 239.5 per cent, oranges at 75 per cent, and raw coconuts 35 per cent.

“It must be emphasised that ‘reciprocal trade’ should be fostered to ensure smooth trade discussion and it is intended that both the Cook Islands and Samoa should trade commodities that each nation produces well and abundantly.” For the Cook Islands, this will include oranges, taro, black pearls, resort apparel and vegetables to name a few. Commodities from Samoa will include coconut oil, coconut cream, cocoa products, tuna and other fish prod ucts, coconut jewellery and Vailima beer.

Transport and linkages are also high on the must-have list. At present, Cook Islands National Line provides a monthly Samoa-Rarotonga service. Proposals are for the Taio Shipping Line to connect Rarotonga and the northern Cook group with Samoa providing more frequent links.

Further down the track, Ellis envisages that perishable goods will be transported on Polynesian Airlines’ proposed direct flight to Apia.

He says the Cook Islands and Samoan Departments of Agriculture will come to an agreed method of product treatment for all produce into and out of Samoa and the Cook Islands. Ellis agrees with Sir Thomas that the idea of a Polynesian Economic Community has merit saying “it is timely that Pacific Island nations sit down and establish bilateral trade agreements”.

He says a major thrust of bilaterals should include identifying each Pacific nation and their products of specialisation which could be exported to a partner coun try that lacks the product in question.

“Up to now, most Pacific island states have looked to New Zealand and Australia for product supplies, however some of the larger Pacific island states like Fiji have developed resources and technology to produce similar substitutes of similar qual ity. “Successful trade between Pacific Island States can be achieved through the removal of tariffs on agreed commodities and the streamline of dialogue and paper work to officiate arrangements,” says Ellis.

And the secret to making all this work, says Sir Thomas, is the willingness to do it in the best interests of “our need and Samoa’s need to survive”.

Sir Thomas Davis has long wanted to see a Polynesian Economic Community.

He said each country has “fought its economic battles alone and often not too successfully”. Sir Thomas believes that as long as Polynesian countries continue to compete against each other, there will be little real growth and “the region will remain the same way for another 100 years”. ■