Trade potential

THERE is a huge potential with digital connectivity and the digital economy which has played an important role in offsetting productivity losses.

This was highlighted by the permanent secretary for the Ministry of Commerce, Trade, Tourism and Transport, Shaheen Ali while delivering the opening statement as the Chair Forum Trade Officials Meeting recently.

"There is a greater need for the Pacific to foster digital infrastructure development and support digital economic integration in the region, as we attempt to restore the Pacific economy in the context of the crisis," he said.

"In addition to this, developing new market-access arrangements and supporting value chains is key to expanding trade. Australia had planned a commercial trial of kava imports in 2020.

"Unfortunately, this was put on hold due to the COVID-19 crisis. We urge that the trial be re-started as soon as possible."

Such opportunities were said to promote Pacific exports in the Australian and New Zealand market which would help MSMEs remain competitive as new opportunities could also be created for labour mobility.

"This could be done by expanding existing labour mobility schemes to new industries and sectors to allow for Pacific workers to compete with workers from other parts of the world.

"Today we have an opportunity to develop regional strategies to address the effects of this pandemic and any natural disasters in future.

"The shock caused by COVID-19 shows us the importance of deepening collective strategies in order to be prepared to face not only the challenges of pandemics, but also the climate-change threats that persist in our region.

"To achieve this goal, we should come up with a clear and prudent recovery plan that lays out various scenarios for the gradual reopening of crossborder travel within the region, intra-regional trade, and the revival of sectors that are most affected by the crisis."

Another potential area of development and collaboration was highlighted to be sustainability and the green economy.

Mr Ali said by embracing a sustainability mind-set, allowed them to help their businesses and workers seize new growth opportunities.

"This is why Fiji and New Zealand, alongside Costa Rica, Iceland, Norway and Switzerland, launched the initiative on the Agreement in Climate Change, Trade and Sustainability.

"And other Pacific Island Countries are also encouraged to join this initiative in order to mitigate the negative impacts of climate change through the trading system.

"We see significant opportunities for Pacific Island businesses to capture growing demand for energy efficient solutions in our Region.

"We also hope to encourage research and knowledge sharing of green technology solutions for the region," he said.

Reducing trade costs and facilitating trade were said needed to be other targeted policies which the Region should seriously consider.

"This can be achieved by strategically directing the Regions Aid for Trade to address our unique trade challenges.

"For instance, there needs to be sufficient support for traderelated adjustment to diversify our economies and to develop and expand new sectors of export interest.

"Collective responses and solidarity are crucial to win the fight against the COVID-19 pandemic," he said.