1 Review of the Current Regional Trade and Integration Initiatives, including the PICTA and the EPA Pacific Islands Forum Secretariat TRINNEX - OPPORTUNITIES IN THE PACIFIC TRADE, INVESTMENT and TOURISM SUPPLY CHAIN ” August 2010 The Melanesian Hotel, Port Vila, Vanuatu

Background  On 23 June 2000, African, Caribbean and Pacific (ACP) States and the European Union (EU) gathered in Cotonou, Benin, to sign the ACP-EU Partnership Agreement, commonly referred to as the ‘Cotonou Agreement’.  The Agreement, which replaced the Lomé IV Convention, was historic in a number of respects.  One of the ‘pillars’ of the new Agreement, for example, was an innovative economic and trade cooperation framework aimed at establishing new trade agreements leading to liberalisation of trade between parties to the Agreement and including co-operation in a wide range of trade-related areas. 2

3 The EU has been negotiating EPAs with the ACP States since September Negotiations in the PACP region commenced in EPA to be negotiated must be “instruments for development” furthering poverty reduction, sustainable development, regional integration and integration into the world economy.

Developments in the PACP-EU EPA Negotiations Negotiations in 2008  dedicated to completing the EPA negotiations between the EU and the PACPS (Fiji and PNG), with a view to sign, notify to the WTO, and start the ratification process of the interim agreement.  PACPS suspended negotiations on services and proposed the inclusion of a rendezvous clause  Trade-related areas such competition, environment and social aspects - not subject to dispute settlement procedures.  the focus be on building capacity and developing the necessary institutional and regulatory environment in the PACPS in these areas. 4

Signing of the IEPA by PNG and Fiji  PNG and Fiji also signed the IEPA on 30 July and 1 December 2009 respectively.  PNG has notified the EC that it has provisionally applied the agreement, while Fiji is still in the process of doing so.  The Pacific IEPA was submitted by the European Council to the European Parliament for their assent (to be formally passed) in February 2010  September, October seating  Decision expected in December 5

PICTA (trade in goods)  PICTA was opened for signature on 18 August 2001 and came into force on 13 April  PICTA became operational on 1 January 2007, as endorsed by the FIC Trade Ministers in June  Apart from the seven FICs that have announced readiness to trade under PICTA, Kiribati, Nauru, PNG and Tonga have completed their notification requirements under PICTA but are yet to complete the remaining domestic arrangements before announcing their readiness to trade under PICTA.  FSM has signed the Agreement but yet to accede. Palau and the Republic of the Marshall Islands are yet to become parties to PICTA. 6

 Strengthen regional economic integration-Pacific Plan  Strengthen negotiating positions with trading partners  Promote FICs integration into the world economy  Meet skills shortages from within region  Retain expertise within FICs  Retain remittances within FICs

The TMNP Scheme should facilitate movement of professionals and skilled workers within the FICs

1.easy to administer, utilising existing systems 2.easy to use; in particular it must offer an easier route into employment in FICs than the current system 3.economical for those who participate in it Central to the scheme’s design must be the ‘customer experience’ of the prospective temporary worker. Note: the scheme does not replace the existing work work permits regime

Tier 1  Professionals who have a minimum of a bachelors degree from a recognised university with a minimum of 3 years of work experience Tier 2  Semi-skilled /trades professionals who have a minimum of diploma or certificate with a minimum of resp. 3 and 5 yeaers of work experience

Tier 1  Open to FIC nationals, citizens or FIC nationals regardless of whether or not the nationals are resident in a FIC and to FIC nationals who have rights of permanent residency in a FIC who are not resident in a FIC [ie. Passport holders and PRs] No quota restriction Tier 2 as Tier 1 Subject to a quota

As a first step to progress implementation of the TMNP Scheme, FICs to :  Recognise existing practices in FICs;  List and exchange overseas universities and training institutions currently recognised by FICs;  Exchange qualification requirements of professionals and semi- skilled /trades professionals currently granted permits to work in FICs; While -  Reaching consensus on regional technical institutions and universities that should be accorded due recognition by FICs;

Annual minimum quota of Tier 2 workers Considerations:  By establishing minimum quota all FICs are confirming their commitment to PICTA and the TMNP scheme  Ideally, quotas should be based on labour market data  Initially at least, quota should avoid a perceived impact on domestic labour market  Number of TMNP workers should be manageable for national institutions

 The labour market provides the best information to determine minimum quota for TMNP Tier 2 workers  An ‘across the board’ ratio for TMNP workers for all FICs is skewed towards the smallest and the largest FICs, and may pose implementation constraints in the latter, at least initially.  Determining minimum TMNP quota allows any FIC to hire more workers as needed.

FIC Workforce Categories and Suggested Minimum Tier 2 Quota  Niue, Tuvalu, Nauru (<5,000)……………………………20 ( %)  Cook Islands, Palau (5,000-10,000)……………………30 ( %)  RMI, Kiribati, FSM, Tonga, Samoa (10,000-50,000)…40 ( %)  Solomon Islands, Vanuatu (50, ,000)..………50 ( %)  Fiji (100, ,000)……………………………………250 (0.04 %)  Papua New Guinea (>500,000).…………………………500 (0.02 %)  FIC Total TMNP allocation………………………………1020 (0.07 %)

TIER 1 + TIER 2 Certification Use of a Card or Certificate Validity Duration of employment contract; max 3 yrs Fees Fees confined to administrative costs only

TIER 1 + TIER 2 Entry visa (called a PICTA TMNP Visa) upon arrival in host country The PICTA TMNP Visa also serves as a work permit Bonds (cost of a return air ticket) to be paid by employers to undertake responsibility for ensuring the employee complies with their immigration status.

Responsibilities of the home country  Ensure workers understand their rights and the restrictions placed on them  Maintain an effective and secure system for certifying applicants Required action- designated authority in each FIC to put in place measures to address this during processing and vetting of applicants. Responsibilities of the host country  effective regulation of the work environment  decent pay and work conditions relative to local workers  basic human rights are respected  penalising employers as appropriate Required action- FICs to put in place appropriate laws and regulations

Responsibilities of the employer to  ensure basic human rights of employees are respected  provide decent wages and working conditions  provide a written contract,  maintain good relations with the hosting government  inform host government if workers abscond  undertake document checks when recruiting to ensure an applicant is eligible to work  pay a bond for employees under the scheme. Action required-FIC to put in place measures to ensure employer compliance. Employers responsible for employees and subjected to penalties if they breach the responsibilities

Responsibilities of the employee  provide accurate and honest the information required  abide by the terms of the scheme, their contract of employment, and the laws of the host country. Action required-laws and regulations put in place to regulate TMNP employees and penalise employees that breach the conditions of TMNP employment

 Identify main designated ministry/department to drive the scheme- eg Ministry for Trade  Identify roles of other departments-immigration, labour, health, education, home affairs etc. Actions required  Form a national TMNP committee  Designate national agency to oversee the TMNP scheme  Identify “designated entity” for application process  Identify other ministries to oversee various TMNP aspects

Regional oversight is required to:  regional focal point for the scheme-ease of reference and information  Management of the scheme  provide a registry for those who participate  inspect, monitor and advise on country processes for the proposed PICTA TMNP Scheme Pacific Islands Forum Secretariat recommended to provide regional oversight Action required -FICs to consider the practicalities of utilising existing regional agencies such as PIFS to provide oversight and as a registry for the scheme

Pacific Islands Forum Secretariat Suggested role:  Lead regional management role for the scheme  Provide central registry  Maintain up to date information on the scheme  Maintain website on the scheme

South Pacific Board of Educational Assessment Suggested role:  Act as Registry for national, regional, international benchmarks for occupations  Develop comprehensive list of accredited education and technical institutes  Assess qualifications of individuals in the scheme  Collaborate with designated national authorities on implementation of the scheme

Pacific Immigration Directors Conference Suggested role:  Provide technical assistance to FICs Immigration Departments  Take on advisory role on the TMNP Scheme  Facilitate implementation of the scheme

 Form working committee for implementation  Identify Lead Ministry managing the scheme  Identify department handling TMNP applications and operational aspects  Review and amend laws and regulations to ensure compliance with TMNP scheme

 Form regional working group to oversee implementation of the Scheme  Identify Management Agency for TMNP Scheme  Identify Supporting Agencies  Facilitate MRAs negotiations (initially based on FICs consensus on existing practices)  Agree on an implementation timeframe (incl. deadline for preliminary work, eg. legislation reforms, MRAs, human rights compliance etc)

Thank you 30