Pacific trade plan dropped

Press, 19 October 1982, Page 38

Pacific trade plan dropped

PA Auckland Plans to establish a freetrade area among South Pacific Forum nations appear to have been dropped because an independent consultant says the concept is impractical. The study was commissioned last year by the South Pacific Bureau for Economic Co-operation, which is the executive arm of the forum. The aim was to see if there was any benefit to be gained by removing trade barriers between island nations. The consultant. Pak-Poy and Kneebone Poy. of Ade-

laide, said the concept was impractical at present and in the foreseeable future. Existing inter-regional trade accounted for only 2 per cent of the total exports of Pacific Island countries and under 3 per cent of their total imports, it said. A free-trade agreement would give unfair advantages to larger countries in the region, said the counsultant. Island nations already enjoyed relatively unhindered access to markets in Australia and New Zealand under the South Pacific Regional Trade and Economic Co-operation agreement.