Pacific Islands - Regional Economic Report : Embarking on a Global Voyage - Trade Liberalization and Complementary Reforms in the Pacific
This regional economic report, evaluates the strategy that the Pacific Island Countries (PICs) have chosen towards liberalizing their economies, and, analyzes as well the interaction of trade liberalization with complementary reforms in taxation, a...
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| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/09/2004284/pacific-islands-regional-economic-report-embarking-global-voyage-trade-liberalization-complementary-reforms-pacific http://hdl.handle.net/10986/15362 |
| Summary: | This regional economic report, evaluates
the strategy that the Pacific Island Countries (PICs) have
chosen towards liberalizing their economies, and, analyzes
as well the interaction of trade liberalization with
complementary reforms in taxation, and the public sector. As
a consequence of multilateral and unilateral efforts towards
freer trade worldwide, preferential access granted to PICs
in developed country markets, is being eroded. In
particular, the report looks at the Pacific Island Countries
Trade Agreement (PICTA), viewed as a "stepping
stone" to become more competitive in global markets. It
is important to note that the formation of a preferential
trade area, as opposed to multilateral or unilateral
liberalization, is perceived as trade liberalization, but in
a gradual process, to limit disruptions, and adjustments to
their economies. However, in order for this "stepping
stone" not to become a "stumbling block," the
liberalization strategy needs to be actively pursued,
through sound policy framework, and trade facilitation.
Furthermore, the small un-diversified economies of, and very
little trade among PICs suggests very small benefits from
PICTA; yet, trade diversion which favors the more
industrially advanced members is likely to develop.
Nonetheless, the formulation of a free trade agreement
between the PICs, and Australia and New Zealand,
negotiations over reciprocal free trade agreements with the
European Union in 2002 as envisaged, and provision of a free
trade association by some PICs with the United States,
inevitably will require the widening of preferential trading
arrangements beyond PICTA, though the timing is uncertain.
It is suggested that the pace and composition of reforms -
in particular, more complete trade liberalization, and
public sector reform - will need to be calibrated to the
progress on efforts to enhance the business environment, and
increase labor, and capital mobility. |
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