NZ, Australia bully Islands over trade: report

By ANGELA GREGORY Pacific issues reporter



New Zealand and Australia are accused of bullying their small Pacific Island neighbours in a report released on the eve of top-level meetings between their nations' leaders.

The report, prepared by Auckland University law professor Jane Kelsey for the Pacific Network on Globalisation, is highly critical of Australia's and New Zealand's behaviour towards the Pacific Islands.

Called Big Brothers Behaving Badly, it analyses the implications of Pacer (the Pacific Agreement on Closer Economic Relations).

Copies will be presented this week to Trade Ministers in Papua New Guinea for talks on a proposed regional economic partnership agreement with the European Union.

Professor Kelsey further expressed concern that the proposal for a Pacific Plan - expected to be a key recommendation of the Pacific Forum review in Auckland tomorrow - might become the "Trojan horse" for Australia and New Zealand to push for deeper regional integration.

"That has the potential to destroy the Pacific Islands."

Professor Kelsey said her report drew on official documents and extensive interviews with politicians, officials and consultants involved in negotiating Pacer.

"This is a story of how Australia and New Zealand bullied the Pacific Islands into an agreement they did not want and the problems that has created."

After two years of "bruising negotiations", she said, what had begun as an agreement to achieve free trade among the Pacific Islands over 10 years was subordinated to Pacer.

Without any assessment of its implications, the islands promised to negotiate a free-trade agreement with Australia and New Zealand in 2011, or earlier if they began similar talks with the EU, she said.

"Just two years on, Australia and New Zealand are insisting that Pacer's trigger has been pulled.

"They will argue on Thursday that negotiations should now begin."

Professor Kelsey said the events surrounding Pacer had left a sour taste in the mouths of many Pacific politicians and officials, and had deepened tensions within the Pacific Forum.

"No one should underestimate the animosity felt towards Australia and New Zealand."

She said the Islands started down the free-trade path in a way they thought was achievable and manageable.

"That opened a Pandora's box ... They simply won't be able to cope technically, economically, socially or politically."

Professor Kelsey warned that if Australia and New Zealand continued exploiting their dominant position and imposing their agenda on the Pacific, they risked creating a platform for social and political chaos and chronic instability.

The Pacific Network on Globalisation called for Pacific governments to "draw back their veil of secrecy" and engage in open and informed discussion with their people on the trade and political negotiations.

Co-ordinator Stanley Simpson said the report revealed a disturbing picture of coercion by Australia and New Zealand from 1998 to 2001 to force the Pacific Islands into agreeing to a trade agreement they did not want to sign.

"Australia and New Zealand are effectively backroom bullies, but Pacific Islands governments can stand up and protect their interests by strengthening democratic participation and informed debate among their people."

Foreign Affairs Minister Phil Goff could not be reached for comment yesterday.