Source: Government of F.S. Micronesia

The Third Trade Ministers Meeting of the Micronesian Trade Committee (MTC) was held in Ngerulmud, Republic of Palau on July 26-27, 2010. The meeting was attended by the Ministers in charge of trade and representatives of Trade Ministers of the three Member States: the Republic of the Marshall Islands (RMI), the Republic of Palau (Palau) and the Federated States of Micronesia (FSM).

The Meeting agreed to a road map for the establishment of a permanent secretariat for the MTC. The permanent secretariat will assist the Freely Associated States (FAS) to coordinate their trade policies and engagement with their trade partners to maximise the development benefits from international trade. The Chair of the 3rd MTC, The Honorable Jackson Ngiraingas, said that this was a major milestone in the development of the trading relations of the FAS, which reflects the strong bonds and benefits of cooperation among the FAS.

The MTC was established in 2008 in accordance with the decision of the Micronesian Presidents' Summit in 2007. FSM has been serving as the interim secretariat for the MTC since 2008 following a decision of the MTC Ministers, which was endorsed by the FAS Leaders. The MTC also agreed that the permanent secretariat will be based in FSM.

The Ministers anticipate that the establishment of a permanent secretariat will have a number of benefits for the FAS and to cooperate on the Economic Partnership Agreement (EPA) with the European Union negotiations in order to maximize the benefits from their tuna resources.

They also highlighted the importance of securing improved rules of origin for fresh and frozen fish (heading 0304/0305) because this is one of the products they may actually be able to produce and export to the EU.

The Trade Ministers emphasized that PACER-Plus must provide clear development benefits to the FAS and take account of the special circumstances of the FAS. The Ministers will work together to ensure a positive outcome. FAS also agreed that they will only accept commitments that are appropriate for small island economies and commensurate with their resources and capacity to implement.

The Ministers in regard to the Pacific Agreement on Closer Economic Relations (PACER-Plus) negotiation look forward to creative thinking on how investment in infrastructure in the FAS can be promoted. They also agreed that development assistance should be a key element of PACER-Plus.