Samoa, Tonga, and Tuvalu have signed a Memorandum of Understanding to establish a Pacific Regional Trade and Development Facility, an initiative to improve the delivery of aid to Pacific Island countries.

The three countries follow Kiribati and Vanuatu who signed the memorandum in May and June, the Pacific Island Forum Secretariat stated on July 19.

The rationale behind the development initiative is an aid-for-trade agreement. It arises from negotiations between Pacific Island countries and the European Union (EU).

 Tonga's Minister for Commerce Tourism and Labour, Dr Viliami Uasike Latu highlighted the importance of Aid for Trade for Pacific island economies.

“This MoU is expected to assist the Pacific islands in pooling their aid for trade resources and coordinating its utilisation in the implementation of regional aid for trade projects. Tonga supports this initiative and looks forward to the facility being operationalized.”

Deputy Prime Minister of Samoa and Chair of the 2013 Forum Trade Ministers Meeting, the Hon. Fonotoe Nuafesili Pierre Lauofo congratulated Tuvalu and Tonga for Joining Samoa in signing the MoU. “The facility is expected to play a vital role in assisting development partners in coordinating their Aid for Trade resources for the Pacific region.

“We look forward to the remaining Pacific ACP States to follow suit in signing the MoU in view of the importance of the Facility in securing Aid for Trade resources,” she stated.

The Memorandum provides for the establishment of a Council as the Facility’s main policy. Regional projects as well as national projects with a regional impact will be considered for funding from the Facility.