There are revelations that a report commissioned by the Pacific Islands Forum Secretariat and completed by Washington based consultants Nathan Associates highlights that a free trade agreement with Australia and New Zealand poses dangers for Pacific economies and its peoples.

The free trade agreement refers to the much talked about Pacer Plus and the Solomon Star reports that the Pacific Network on Globalisation has outlined 10 reasons why Pacer Plus must be properly looked into.

The report found that under PACER Plus, Pacific countries stand to lose tens of millions of dollars each year.

That report found that even bigger countries like Fiji and PNG stand to lose more than $10 million each year.

It said PACER Plus could lead to higher taxes for the poor highlighting that if Pacific governments sign on to PACER Plus they will have to look for other ways to raise money they need to provide public services.

This usually means introducing a new tax in the form of a value added tax or goods and services tax.

According to the report, PACER Plus will lead to business closures and job losses.

It said businesses and industries in the Pacific Island Countries face considerable constraints to doing business and opening Pacific markets to large well established corporations in Australia and NZ who do not operate within these constraints may not necessarily make Pacific businesses more efficient B it may instead wipe them out.


Story by: Ronal Deo