A trade and development agreement that will lower barriers, provide greater certainty for NZ businesses, and raise living standards, create jobs and increase exports in Pacific Island countries.

Who is involved in PACER Plus

PACER Plus builds on existing trade agreements: the South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA) (1980) and the original PACER Agreement (2001). 

There are currently eleven signatories (Australia, Cook Islands, Kiribati, Nauru, New Zealand, Niue, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu), who in addition to signing PACER Plus, signed an accompanying Labour Mobility Arrangement. 

Why it’s a priority for New Zealand

Pacific Island countries are our nearest neighbours and, with almost 296,000 Pacific peoples living in New Zealand, we share strong personal ties. New Zealand has a clear interest in a prosperous and sustainable region and our main objective for PACER Plus is to encourage economic development in Pacific countries. 

What are the potential benefits?

Opportunities for economic development in Pacific Island countries are limited because of their small size and the difficulty achieving the economies of scale needed to compete in international markets. PACER Plus should help create jobs and wealth in the Pacific by making it easier for these countries to trade.

The intended benefits of PACER Plus are: 

  • a more predictable trading environment
  • more consistent and transparent rules throughout the region on sanitary and phytosanitary measures, technical barriers to trade, and customs procedures
  • more liberal and product-specific rules of origin
  • increased investment in the region, in particular by New Zealand and Australian investors into Pacific Island countries
  • greater certainty around tariffs for exporters
  • more opportunities for trade-related development assistance for Pacific Island countries
  • a more mobile labour force in the region.

Impacts on Māori

It is not envisaged that there will be any significant impact on Māori interests although there may be opportunities to leverage economic cooperation around labour mobility and for Māori exporters to benefit from trade liberalisation and economic integration. As with other New Zealand trade agreements, PACER Plus contains a specific provision whereby New Zealand maintains its rights to take measures to fulfil its obligations to Māori including under the Treaty of Waitangi.

Further information on an analysis of known Māori interests in PACER Plus and the potential impact of these interests can be read here: Maori Interests [PDF, 347 KB]

Factsheets

The following factsheets summarise the contents of the agreement.

Overview: Purpose and benefits [PDF, 1 MB]

Development and economic cooperation [PDF, 1.3 MB]

Labour mobility [PDF, 646 KB]

Legal and Institutional Chapters [PDF, 801 KB]

Pasifika New Zealand [PDF, 1.6 MB]

Te Moana-nui-ā-Kiwa and Māori development [PDF, 1.5 MB]

Trade in goods, Rules of Origin and customs [PDF, 1 MB]

Services, investment and visa access for business people [PDF, 801 KB]

Negotiation status

Negotiations started: In August 2009 Pacific Islands Forum Leaders agreed to commence PACER Plus negotiations.

Status: Negotiations concluded on 20 April 2017. Following signature, the Agreement will enter into force 60 days after eight negotiating parties have notified the Depositary (Government of Tonga) that they have completed their internal requirements.

Current priority - ratification  

New Zealand became the first PACER Plus signatory country to ratify PACER Plus on 24 October 2018. This followed Cabinet’s approval of the required legislation on 23 October 2018 and New Zealand advising Tonga (as the depository of PACER Plus) that New Zealand has completed its domestic procedures to ratify the PACER Plus.

Read: Minister of Trade and Export Growth welcomes ratification. (external link)

The remaining 10 signatories are currently focused on progressing towards ratification of PACER Plus to allow entry into force hopefully in 2019.

Changes to legislation

Most of the obligations in PACER Plus would be met by New Zealand's existing domestic legal and policy. Some legislative amendments were required which related to amendments to the Tariff Act 1988 to enable the application of preferential tariff rates under PACER Plus and amending the rules on "goods re-entered after repair or alteration" in Tariff.  The Tariff (PACER Plus) Amendment Bill has now passed through the House and the required regulations have been approved.

Further information is available at New Zealand Parliament (external link)and on NZ Treaties Online. You can also access the Bill on the legislation website.

How to get involved

You may wish to access information through the Parliament website (Foreign Affairs, Defence and Trade Select Committee) attend one of our public engagements on trade or contact us directly.

Monitoring and Evaluation

In May 2018, two working groups were established to help frame and inform the development of a monitoring and evaluation framework for the PACER Plus agreement.  An update [PDF, 205 KB] on progress to date is available here.

If you are interested in being involved in the framework design process please contact Susanna Kelly, Senior Adviser (Monitoring and Evaluation) by email susanna.kelly@mfat.govt.nz.  

Public meetings

To find out more about our public engagements on trade read Public engagements on trade

Here is coverage (external link) of an event on PACER Plus hosted by our Pacific Connections unit in Auckland on 13 September 2018 and copy of the presentation [PDF, 774 KB]

Ask us

We are happy to arrange meetings with stakeholders and Iwi/Māori organisations to discuss how PACER Plus may affect you, your business or your communities. 
 
Submissions or requests for information can be sent to:

Email PACREG@mfat.govt.nz 

Further information

The National Interest Analysis assess PACER Plus from the perspectie of its impact on New Zealand and New Zealanders.

National Interest Analysis [PDF, 1.4 MB]

New Zealand-Australia side letter [PDF, 210 KB]

Australia-New Zealand side letter [PDF, 72 KB]