Reference: G/PAC/0407
Location: Port Vila, Vanuatu
Duration: Two years
Closing Date: 23 Sep 2011
Background
The Melanesian Spearhead Group (MSG) is a sub-regional organisation, established in 1988 with the objective of assisting its members (Fiji, Papua New Guinea, Solomon Islands and Vanuatu) with their own economic integration as well as supporting them in trade integration initiatives and negotiations.
In comparison to the other Pacific countries, the MSG countries have significant natural resources, contribute to over 70% of the region’s trade and account for over 80% (Total population of MSG members: 8,344,335) of the region’s population. Of the four members one (Fiji) is an Upper Middle Income Country, two (PNG and Vanuatu) are Lower Middle Income, and one (Solomon Islands) is Low Income. The members have an average GDP per capita of $2,548.
The four MSG countries are signatories to, and are currently negotiating a number of regional trade agreements. This includes the MSG Trade Agreement (MSGTA) which was concluded in 1993 and revised in 2005 to facilitate greater liberalisation.
MSG requires assistance in managing intra, regional and multilateral trade integration, which, while advantageous to trade advancement of the member states, are fraught with challenges. These challenges include differences in strategy, position and policies; a lack of capacity of MSG and national trade officials to manage trade negotiations and international trade requirements; and a lack of meaningful information and knowledge sharing between the members. These challenges are more fully described in the “Problem” section of this document.
In addition to their intra-integration, the MSG countries are part of the 15 Pacific ACP states (PACPS) (including Timor Leste), and are currently negotiating an Economic Partnership Agreement (EPA) with the European Union. Two MSG countries (Fiji and Papua New Guinea) initialised an interim Economic Partnership Agreement (EPA) in 2007, which was subsequently signed by both countries in 2009. The MSG countries are also party to the Pacific Island Countries Trade Agreement (PICTA); a reciprocal free trade agreement between all 14 Forum Island Countries (FICs). In addition, the MSG countries (with the exception of Fiji), along with the FICs have recently commenced negotiation of a new Pacific Agreement on Closer Economic Relations (PACER Plus) with Australia and New Zealand, as agreed by the 2009 Pacific Island Forum Leaders. Three MSG members (Fiji, Papua New Guinea and the Solomon Islands) are WTO members, with Vanuatu currently at an advanced stage of accession negotiations. All four MSG members are participating, on a limited basis, in the Doha Round of negotiations.
Purpose of the project
This project aims to strengthen the capacity of the members of the Melanesian Spearhead Group (Fiji, Papua New Guinea, Solomon Islands, Vanuatu) to effectively deal with regional and multilateral trade issues, including the conclusion of trade agreements that reflect their trade and development interests.
Scope of work
The project will employ an expert as a Regional Trade Development Adviser for a period of 24 months to be based at the MSG Secretariat in Port Vila, Vanuatu. He / she will provide policy and technical advice and support to MSG officials in order to strengthen the capacity of MSG countries to effectively formulate, negotiate and implement trade policy pertaining to regional integration.
This project has four expected outputs:
1. Analytical studies to support Regional Trade Integration negotiations including PACER Plus with Australia and New Zealand.
The studies will cover the following topics:
- Economic Feasibility; General Economic Impact and Implications of a Free Trade Agreement between MSG member countries and its other strategic trade partners including Australia and New Zealand under PACER Plus; Possible free trade area with strategic Asian partners, e.g. ASEAN, China.
- Economic Analysis to support regional integration policy formulation, negotiations and implementation including the Pacific Island Countries Trade Agreement (PICTA), Economic Partnership Agreement (EPAs) and PACER Plus;
- Development-orientated policy approaches to addressing sector-specific or thematic priority areas in FTA negotiations, including PACER Plus.
2. MSG trade officials’ capacity to deal with regional and multilateral trade policy issues is assessed and addressed.
This will involve an assessment of the lead agencies in each country and the development of a tailored capacity building plan per country to address identified areas of weakness.
3. Common strategies and coordinated positions in regional and multilateral negotiations.
The topics upon which common strategies and coordinated positions will be developed, with documentary commitment in place where appropriate (such as an MoU or position paper), will include the following:
- Agriculture and Industrial Products, including treatment of ‘Sensitive Products’;
- Fisheries;
- Trade in Services including Mode 4 (Temporary Movement of Natural Persons);
- Investment;
- Intellectual Property Rights and Technology Transfer (TRIPS: Biodiversity and Traditional Knowledge);
- Non-Tariff Barriers (NTBs);
- Sanitary and Phytosanitary Standards and Procedures;
- Competition Policy and Domestic Regulations.
4. A sustainable knowledge and information sharing mechanism.
This is expected to facilitate the exchange of experiences, policy analysis and developments occurring under this project amongst targeted stakeholders.
Implementation arrangements
The expert will work closely with Commonwealth Secretariat Advisers in delivering this technical assistance. The expert will be based at the MSG Secretariat in Vanuatu for a period of 2 years and will report directly to the MSG Director General. The expert will also work closely with the Forum Island Countries, Office of the Chief Trade Advisor (OCTA) (also based in Port Villa Vanuatu to avoid duplication of work.
The MSG Secretariat will provide financial and in-kind support of the operational aspects of the project, including local travel, office equipment and administrative support.
The Economic Affairs Division of the Commonwealth Secretariat will provide technical support throughout the project, which will be managed and monitored by an Adviser at the Technical Cooperation and Strategic Response Group (TCSRG) in the Governance and Institutional Development Division (GIDD).
Person specification
The expert should have:
- A post-graduate degree in economics, international economics, international trade law, commerce or related disciplines.
- Minimum 7 years relevant experience in the above areas in the Pacific island region and/or developing countries.
- Sound knowledge of trade policy, regional economic integration, multilateral trade (WTO) issues and trade negotiations relevant to MSG countries.
- Sound understanding and knowledge of the trade and sustainable development concerns of small economies involved in economic integration processes particularly MSG member countries.
- Experience of providing policy advice at senior and ministerial levels.
- Strong analytical and organisational skills.
- Clear command of written and spoken English.
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