Regional Trade Agreements
Vanuatu is member to regional bodies within the Pacific region and signs to regional trade agreements
Regional Trade Agreements
Regionalism is based on membership from the same region who have similar economies, cultural or political affiliation. Vanuatu is member to regional bodies within the Pacific region and signs to regional trade agreements such as the Pacific Island Countries Trade Agreement (PICTA), Pacific Agreement on Closer Relations (PACER PLUS) The agreements, has been in the forefront that was ratified by the Parliament in 2022. While the Melanesian Spearhead Group Trade Agreement is silent but is active on its implementation and Pacific Island Countries Trade Agreement is being reviewed including the active sub-regional of the Melanesian Spearhead Group trade agreement (MSGTA).
Pacific Agreement on Closer Economic Relations (PACER) Plus
A brief on the genesis of the PACER plus trade agreement. The negotiations started in 2009 and concluded in April, 2017. The Government signed the agreement in September 2017 and ratified in July 2022. The PACER plus framework is a very comprehensive agreement which covers trade in goods, trade in services, movement of natural person, Labour Mobility, investment, and the plus component is the Development & Economic cooperation that is unique to other binding traditional trade agreements. Vanuatu is a full member to the PACER Plus trade agreement and is a beneficiary to the development assistance provided and coordinated through the PACER Plus Implementation Unit (PPIU) in Apia, Samoa. The PPIU coordinates and assist members implement the agreement obligations and monitor country and regional projects and work programs budgets and expenditures.
Melanesian Spearhead group Trade Agreement (MSGTA-2005)
Vanuatu had been instrumental for the development of the unique sub-regional Melanesian Trade Agreement. The development of the trade agreement was purposely for the free movement of goods within the MSG members and is the only active agreement in the region. But the current implementation of the agreement only covers trade in goods. 29. The MSG trade area is now fully duty free except for alcohol and sugar trade among the MSG parties. Vanuatu trade trend shows that it is importing more from MSG parties and less exports to MSG parties. Vanuatu major exports to MSG markets for the last three years (2020-2022) are beef and kava. The 2015 third revision of the trade agreement (MSGTA3) is centred around the legal framework and is aim at progressively liberalising and facilitating trade in goods and deepening MSG economic integration through making further commitments on services, labour mobility and cross-border investment.
Pacific Island Countries Trade Agreement (PICTA)
PICTA trade agreement. The Pacific Island Countries Trade Agreement has been operational since 2007, to promote regional integration and moving towards wider integration with the global economy. Eight countries trade under PICTA: Cook Island, Fiji, Kiribati, Niue, Samoa, Solomon Islands, Tuvalu and Vanuatu. Nauru, Papua New Guinea (PNG) and Tonga are yet to utilise the agreement. Vanuatu trade under PICTA agreement is minimal and is yet to ratify the PICTA protocol agreement on trade in service which Vanuatu can take advantage on sector of its interest. The only current update on the PICTA is the revised rules of origin which members are yet to get the update on the progress and agree on the revision.