Increased opportunites for Tongan migrant workers and lower fees for students going to New Zealand and Australia, along with other development assistance goals, are among key advantages being sought by Tonga in its PACER Plus free trade negotiations.

The proposed free trade agreement between the Forum Island countries and Australia and New Zealand, known as PACER Plus, is being promoted by government and discussed with the local business community, in the midst of the current negotiations.

Over recent years, while the Tongan government has been supportive of PACER Plus, it has been developing proposals that will help Tonga maximise the benefits of signing up to the agreement.

Despite Tonga’s limited export capacity, the government has been steering its demands towards labour mobility and development assistance in exports.

Emigration is becoming increasingly recognised as paramount to Tonga’s financial recovery and economic future.

Protection

Tatafu Moeaki, the CEO for the Ministry of of Commerce, Tourism and Labour told Tonga's Chamber of Commerce and Industries on March 7, that PACER Plus would help broaden Tonga’s economic base and give better rights to local businesses. He said the plan was meant to protect the interests of businesses and increase benefits.

He explained that some of Tonga’s proposals with Australia and New Zealand on PACER Plus included a higher immigration quota for Tongans moving to Australia and New Zealand, and the removal of international fees for Tongans studying in New Zealand.

Labour mobility

Another proposal was expanding Tonga’s labour mobility schemes to New Zealand and Australia. For several years labourers from Tonga have been hired to work as fruit pickers in New Zealand on a seasonal basis, and the Tonga government hopes to negotiate to expand this temporary work force to include semi-skilled labourers.

He said that under a free trade agreement, businesses would no longer have to pay tariffs for imported goods and trade barriers would be removed.

Anxieties

Meanwhile, there remains some anxiety over how a free trade market might affect Tonga.

Business people at the meeting could see the advantage of no tariffs, but the question was raised about how the Tongan government would be able to cope with the loss of tariffs as a significant source of revenue.

How local producers would be affected by the influx of New Zealand and Australian goods, as well as the lack of Tongan exports, was also a question of concern.