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Overall Objective/Purpose
The sustainable development of the Pacific ACP
economies as an economically integrated region. This should lead to improvements
in Gross Domestic Product (GDP)and economic growth of national
economies.
The Programme
The PACPS have
accepted that integration into the world economy is a vital element in the
strategy to achieve sustainable economic growth and poverty reduction. They have
further accepted that an integrated regional approach is the most effective
strategy for engagement in the global economy. Regional economic integration
thus becomes an important objective of the region, reflected inter alia in its
adoption as a focal area in the 9th EDF Pacific Regional Indicative Programme
(RIP) in 2002.
In pursuing the PACPS chosen strategy, they face the dual
responsibility of developing closer economic linkages among themselves, and of
coordinating their growing economic linkages with the international economy. The
PACPS took the necessary steps by agreeing to first establish the Pacific
Islands Countries Trade Agreement (PICTA), providing for free trade in goods as
the first step towards a more comprehensive integration that is intended in
future to embrace also trade in services and possibly investment. This approach,
focusing on integration among the PACPS themselves as the first step towards
fuller integration with the global economy, is also consistent with the Cotonou
Agreement, which states that economic and trade cooperation shall build on
regional integration initiatives of ACP States, bearing in mind that regional
integration is a key instrument for the integration of ACP countries into the
world economy.
PACREIP supports regional economic integration of the
PACPS in two important ways.
First, consolidation of the PACPS as an
integrated regional unit through the establishment of a free trade area covering
the PACPS.
And second, engagement of the PACPS as a regional unit in the
wider regional and global processes, including the negotiation and subsequent
operation of trade with developed country partners such as the EU, and also in
multilateral negotiations at the WTO.
The programme addresses several
necessary aspects of regional economic integration. Firstly, it is important
that the PICTA, providing for free trade among the PACPS themselves, is
successfully implemented and that it operates effectively. Opportunities to
provide further benefits to the PACPS by extending the PICTA, for example to
cover services or to include the French and US Pacific territories must also be
explored.
Second, when participating in international trade
negotiations, the PACPS must have the capacity to identify their interests in
the negotiations and to negotiate effectively and cohesively in pursuit of those
interests.
Third, substantial capacity building in the PACPS is needed
to maximise the benefits and minimise the risks and costs of their regional
economic integration strategy. This will be addressed by developing national
capacities to manage fiscal and environmental implications, to develop private
sector capacity to exploit trade opportunities, to establish and enhance trade
facilitation programmes and to develop offshore banking systems to comply with
international standards.
Finally, two sectors - tourism and fisheries-
stand out across the region for their potential to support sustainable economic
development within the PACPS through deeper engagement with the wider global
economy. The strengthening of regional approaches to exploit the potential of
these two sectors is an essential element of a regional economic integration
strategy for the PACPS. [Fisheries development is subject to a separate 9th EDF
financing proposal].
The Pacific Islands Forum Secretariat (PIFS) is the
contracting authority for the PACREIP and the implementing agencies are the
PIFS, the South Pacific Tourism Organisation (SPTO), the Secretariat of the
Pacific Community (SPC) and the Secretariat of the Pacific Regional Environment
Programme (SPREP).
The Financing Agreement, 9.ACP.RPA.006 for PACREIP of
Euro 9.2 million between the European Commission (EC) and the PACPS was entered
into force on 7 February 2004. PACREIP is the largest programme within the 9th
EDF Pacific RIP. PACREIP began operations in the second half of 2004 and is
scheduled to continue until 2009. The EC approved in March 2006 an additional
amount of Euro 10 million for the 9th EDF RIP follow the mid-term review of the
Regional Strategy Paper (RSP) and the Regional Indicative Programme (RIP). Of
this amount, Euro 2M is allocated to PACREIP specifically as a top up funding
for Component 2-Capacity Building for EPA negotiations with the EU.
The
Contribution Agreement (CA) No. 9.EDF.CA.13 for five components implemented by
the Pacific Islands Forum (PIFS) was signed on 24 May 2004, for an amount of
Euro 6.33m. Two further CAs, with the SPC No. 9.EDF.CA.15 and the SPTO No.
9.EDF.CA.14, were signed on 12 October 2004, for an amount of Euro 0.85m and
Euro 0.71m respectively. Implementation of the PIFS CA began in July 2004 with
the recruitment of the Programme Manager (PM). Whilst the SPTO and SPC CAs
started in November 2004. PACREIP has six components and PIFS, SPC, SPTO and the
SPREP are tasked to implement the six components as follows:
I. PIFS
implements
Component 1- Support to PICTA
Implementation;
Component 2- Capacity Building for EPA
Negotiations with
the EU;
Component 3-Support for participation in the
WTO;
Component
4-Capacity Building for REI in:
4.1 - Private Sector Development;
4.3 -
Trade Facilitation, Customs,
Standardsand Conformance, and
4.4 -
Financial Sector and Fiscal Reforms;
and
Component 6-Programme Management
and
Coordination.
II. SPC implements
Component 4-Capacity Building for REI in
4.2 - Trade
Facilitation, Biosecurity.
III. SPREP will implement
Component 4-Capacity Building for REI in
4.5 -
Environmental Impact assessment of
the new trade arrangements;
and
IV. SPTO
implements
Component
5-Capacity building for regional
tourism development.
The main focus
of PACREIP is to build and strengthen capacity of the PACPS to enable them to
effectively implement PICTA, successfully conduct EPA Negotiations with EU,
effectively support PACPS participation in the WTO, active engagements in
regional economic integration in Private sector development, Trade Facilitation
(Customs and Biosecurity), financial sector and fiscal reforms and regional
tourism development.
The PACREIP is expected to achieve the following
outcomes for the PACPS:
1. The progressive implementation and development of
the PICTA;
2. The successful establishment of new trade arrangements between
the Pacific ACP region and the EU;
3. Improved PACP capacity to negotiate and
promote WTO related issues;
4. Strengthen PACP capacity to manage the process
of regional economic integration in the areas of;
4.1 Private Sector
Development;
4.2 Trade Facilitation, Biosecurity;
4.3 Trade Facilitation,
Customs;
4.4 Financial Sector and Fiscal Reforms; and
4.5 Environmental
Impact Assessment.
5. Regionally integrated development of environmentally
sustainable SME- based tourism; and
6. Efficient coordination and management
of regional economic integration and development of appropriate policy
framework.
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