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INTRODUCTION: Australia's Trade Minister, Simon Crean, says he hopes this week's meeting of Pacific Island Forum Trade Ministers will be able to map out the issues that need to be addressed by the proposed PACER Plus trade agreement. PACER Plus aims to bring Australia and New Zealand together with the Pacific Island countries in a new regional integration agreement. It is likely to be the most transformative trade deal ever signed by the region and some Pacific countries are worried that Australia is pushing the pace of the talks too fast. Speaking from Townsville, shortly before his departure, Mr Crean told Jemima Garrett that while PACER Plus will be a key issue for the Ministers, it will not be the only one.

CREAN: There are also other issues for discussion including how we can improve the Pacific Islands Trade and Investment Commission, that's an important facilitating arm for improving trade for the Pacific area. To review the aid programs, to look at this issue of how we can address the issues of traditional knowledge and intellectual property related issues that are quite unique to the Pacific, as well as to review their progress in the other trade negotiations that they've been having. So annual meetings, but with the focus on trying to advance a constructive agenda for economic sustainability within the region.

GARRETT: You say that PACER Plus will create jobs, raise standards of living and boost economic growth in the Pacific Island countries. How can you be so sure of that?

CREAN: Because trade does boost jobs and growth, trade is a multiplier of economic growth, any country that wants to not just grow its economy and create the jobs but do it in a sustained way has to engage in trade. But that being said, it's recognised by us that for developing countries, and especially small island countries, there are huge capacity deficiencies. So it's not enough to just talk about trade liberalisation and openness as a panacea. That won't work unless you're addressing their infrastructure constraints, their skill sets, their technical knowledge, and that's why we talk about it being PACER Plus. The Plus is the capacity building. Now I'm convinced that if we can work cooperatively to not just address the trade aspects, but also capacity building in the region, that we can move to stronger economic sustainability for the island nations.

GARRETT: Some Pacific countries are worried that Australia is pushing the pace of the talks too fast, how do you respond to that?

CREAN: Well I've heard that and we can't push it too fast, I mean you can't make people agree. They've got to be convinced that it's in their interests, so what I think it is important to do is to continue to engage, to address the concerns, that's why we've funded initiatives in each of the countries to enable them to identify the particular issues that concern them, and get support as to how they can address them. So Australia is not pushing this too fast or too hard. But I do genuinely believe that the economic sustainability of these nations is an imperative. That's a value that all of us share. And after all we're responding as well to a unanimous decision of Pacific Island leaders in Cairns last year to proceed to undertake a PACER Plus negotiation.

GARRETT: The argument that the Pacific Islands put is that they need to hold national consultations and have a chance to work out their negotiating position before they're pushed into negotiations. Isn't that a fair point?

CREAN: Yeah I don't disagree with the need for national consultations and we've agreed readily to that, the fact that they do have to consult, but there's got to be something to consult about Jemima. And until you get into the negotiations, what's the point? Having a consultation as to whether the principle sounds good? No I think the consultations need to focus on the detail, and you can't advance the detail unless you progress the talks.

GARRETT: What specifically would you like to see come out of this meeting in the Federated States of Micronesia?

CREAN: Well it's the first stock-take since the establishment of the Office of the Chief Trade Adviser. That was a key decision of the leaders last year and when we met in Brisbane as trade ministers to authorise the payment and the establishment of this office. Clearly little has been able to proceed until you get not just the person in place, but the office up as well, because we understand that as part of the capacity building argument we need to enhance the ability of the Pacific Island nations to undertake the negotiations. That's who the Office of the Chief Trade Adviser reports to, it's got nothing to do with Australia and New Zealand except us funding that person. So that office is now in place, that person is in place. I think what we hopefully can do from here is to start mapping out the issues that do need to be addressed around which the consultations occur. And so I think if we can progress sensibly in that direction that would be a good outcome.

Media inquiries

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