After years of negotiations, the interim government in Fiji, along with Papua New Guinea have today signed an Interim Partnership Agreement with the European Commission.

In a statement issued in the last hour, the Delegation for the European Commission for the Pacific said the EU reaffirms its recognition of the development needs of the Pacific region.

It said that PNG and Fiji and the European Commission have accordingly initialed an Interim Partnership Agreement which will serve the immediate market access interests of the two Pacific states and later, for any other Pacific nation which may wish to join.

The EU stresses that on January 1st, 2008 the World Trade Organization waiver for the ACP preferential trade regime expires and in order to safeguard the interests of the Pacific ACP which have significant commercial interests in the EU, a WTO compatible trade arrangement with the EU is being established.

It said this will ensure that the states concerned can start to benefit from the improved market access and rules of origin and avoid the trade disruption that might otherwise arise from the loss of the Cotonou preferences.

It reveals that the Interim agreement with PNG and Fiji will boost the development in the two countries through the provision of duty and quota free market access and improved rules of origin in areas of fisheries, textiles and agriculture and is expected to lead to investment and employment opportunities in Fiji and PNG.
The statement goes on to say that reflecting the wishes of both Fiji and PNG, further issues, notably trade and development co-operation, will continue to be dealt with in the wide regional framework.