24 Feb 2003

Development academic say Pacific trade plans will harm the region

5:34 pm on 24 February 2003

The head of development studies at Victoria University in Wellington says the current approach to trade liberalisation is not the answer to the economic woes of Pacific countries.

Vijay Naidu, who has recently moved to New Zealand from the University of the South Pacific in Suva, says the PICTA scheme which will set up a Pacific Free Trade Zone will harm the small countries.

He says the scheme would need to provide protection for infant industries and support for the smaller producers so it becomes a more gradual process and does not toss countries in the deep end.

Dr Naidu says while PICTA is to be eased in over a number of years, it will not provide the necessary protection.

"at the moment a number of commodities for which Pacific Island countries have trade agreements which are not reciprocal, that is, they can export without having to import from the country they are trading with ..all of that will go, so for example sugar, copra, special price access will go"