The possible launch of trade negotiations by Prime Minister John Key and the other Pacific leaders at the Pacific Islands Forum, beginning today in Cairns, must not plunge Pacific people already hit by the economic crisis, food crisis and climate change further into poverty, says international aid agency Oxfam.

With overall economic growth in the Pacific expected to slow, and falls in tourism, remittances and exports resulting from the global financial crisis likely to hit hard, any new trade arrangements must prioritise development to truly benefit Pacific nations, says Oxfam New Zealand Executive Director Barry Coates, in Cairns.

"Trade can play a role in helping lift people out of poverty, but any new negotiations must be in the form of an economic cooperation agreement that aims to support the Pacific's development, not a standard free trade agreement that would undermine local economies and people's rights," says Coates.

Negotiations for a new free trade agreement under the Pacific Agreement on Closer Economic Relations, known as ...‘PACER Plus', between Australia, New Zealand and the Pacific, are on the agenda this week.

"If this is to be a standard free trade agreement, the Pacific stands to lose a lot. Concerns include potential loss of small businesses and jobs, as local firms are placed in direct competition with better-resourced New Zealand and Australian companies; loss of government revenue through removal of tariffs and import duties - leading to cuts to health and education services; threats to agriculture from the reduction of tariffs on food imports; and a lack of capacity for small Pacific Island countries to determine their interests and negotiate effectively."

He said Pacific Island countries were already negotiating a number of trade agreements and initiatives with other countries, and needed time to consider all the implications of a PACER Plus agreement with New Zealand and Australia.

Coates said a new Oxfam report identified that there are viable alternatives to the standard free trade agreement model so far discussed for PACER Plus. "What is needed is a truly development-focused economic cooperation agreement with the Pacific's development at its core. This would be a very different approach to a free trade agreement that undermines, rather than enhances, economic development."

"There are no models of an equitable economic cooperation agreement that negotiators can draw on, and there is no regional negotiating coordination for the Pacific as yet. New Zealand and Australia must listen carefully to the Pacific's concerns and provide time and resources for a new form of agreement to be developed. This will require time for the Pacific to consult fully with their civil society groups, the private sector, MPs, traditional leaders and community representatives."

"There will be no real development improvement for the Pacific, if most of the Pacific's people are not informed, consulted and benefiting. This agreement must have relevance for most of the people in the Pacific who live in rural communities, and rely on traditional forms of livelihood such as agriculture and fishing."

ON CLIMATE CHANGE

Meanwhile, the Pacific Islands Forum is an opportunity for New Zealand to join with Pacific leaders in their call for urgent action on climate change. The focus should be on New Zealand accepting its responsibilities towards the survival of its island neighbours and their people.

Coates said people in the Pacific are facing increasing food and water shortages, dealing with rising cases of malaria, coping with more frequent flooding and storm surges, losing land and being forced from their homes.

"It's important for the Government to show its neighbours at the Pacific Islands Forum that New Zealand is serious about our responsibility for climate change and our commitment to help vulnerable communities deal with it," said Coates.

"The lives, homes, livelihoods, food and water of many Pacific communities are under threat. These people have done almost nothing to cause the climate crisis. New Zealand has a responsibility to act now by reducing our own emissions, helping our neighbours adapt to the climate change impacts they are already experiencing, and supporting their development on a low-carbon pathway," he added.

He said the Government must commit to deep reductions in greenhouse gas emissions. Oxfam is calling for reductions of at least 40 per cent from 1990 levels by 2020."

"Support for adaptation is no substitute for New Zealand's emissions reductions but can help people who are at risk of devastation. New Zealand needs to provide substantial new and additional money for climate change adaptation focused on the Pacific. So far, compensation to help these communities cope with their most urgent needs has fallen well short of what is necessary." Oxfam, 05/08/09.