Pacific Outlook

MAY – JUNE 2002 Message from the Trade Commissioner

BEIJING OFFICE UPDATE It has been a particularly busy time for the Commission with training workshops in the Federated States of Micronesia and Vanuatu. We have also had on board our first training The Pacific Islands Forum Trade attachments from the Islands: Ms Moana Timakata, from Vanuatu’s Department of Trade, Office (PIFTO) in Beijing is now Industry and Investment and more recently welcomed our second trainee attachment, Ms fully operational Julienne Leka-Maliaki, a Senior Marketing Officer, with the Investment and Export The office is in the process of developing Promotion Division of the PNG Investment Promotion Authority. an English/Mandarin interactive website (www.pifto.org.cn), which will offer In recent weeks, we have also had two students from Tahiti join us as part of an AusAID direct links to the three other trade sponsored French Polynesian market study mission. Ms Marylène Richmond is researching offices in Auckland, Sydney and Tokyo, the Australian market for Tahitian arts and crafts on behalf of an industry body, Gie Art Tahiti, as well as to websites of Investment and Ms Louise Frogier is researching deep-sea fishing for a company called Pacific Tuna. Promotion Agencies in the Pacific Island countries (PICs). Australian Senate Inquiry The site will cater for China-based In March, the Australian Senate announced an inquiry into Australia’s relationship with clients seeking business opportunities Papua New Guinea and other south west Island countries. The Commission has provided in the PICs, as well as Pacific-based input through a joint submission under the Australia Pacific Islands Business Council. clients seeking opportunities in China. The inquiry is focussing on: The official opening of the Trade office • the current state of political relations between regional states and Australia and New is planned for the third quarter, 2002. Zealand; To contact PIFTO, write to: • economic relations, including trade, tourism and investment; Mr Rohan Ellis • development cooperation relationships with the various states of the region, including Trade Representative the future direction of the overall development cooperation program; and Pacific Islands Forum Trade Office • the implications for Australia of political, economic and security developments in the region. 1 Xindong Lu If your organisation is interested in submitting comments to the inquiry, the closing date 5-1-31 Ta Yuan Diplomatic Compound for submissions to this inquiry has been extended to 8 July 2002 (for more Chaoyang District, 100600 information:www.aph.gov.au/senate/committee/). Beijing Aivu R Tauvasa People’s Republic of China Trade Commissioner Telephone: (8610) 6532 6349 Facsimile: (8610) 6532 6360 Email: [email protected] PNGIPA joins forces with PITIC In late April, Ms Julienne Leka-Maliaki, a Senior Marketing Officer, with the Investment and Export Promotion Division of the PNG Investment Promotion Authority, began a three-month upskilling/ training attachment with the Commission. PACIFIC ISLANDS TRADE AND Ms Leka-Maliaki is an ‘agent/correspondent’ for PITIC’s Business INVESTMENT COMMISSION Export Australia Programme (BEAP) in PNG. “This training attachment programme is an important milestone Inside Pacific Outlook for the Commission and the PNG IPA’s investment and export promotion programmes,” Ms Leka-Maliaki said. Beijing office update 1 “Papua New Guineans are increasingly interested in exporting their products to Australia, PNG joins forces with PITIC 1 and this training provides the opportunity to enhance these interests and to further The changes to ANZFA 2 investigate the potential of promoting specific products in Australia. Electronic Trade 2 “Papua New Guineans are aware of the stringent import standards and requirements of the Public Affairs Training in Vanuatu 3 Australian market, hence working with PITIC over the three months will assist in undertaking preliminary market research on specific product areas and possibly identify Export and Investment Training niche markets for PNG products. I am optimistic that this training programme will also in FSM 3 assist the IPA in understanding and appreciating how PITIC’s strategies are implemented Trade Terms 3 and how business is conducted with buyers/importers in Australia,” she said. What’s on 4 Biosecurity Australia Highlights 4 THE PACIFIC ISLANDS TRADE AND INVESTMENT COMMISSION IS AN AGENCY OF THE PACIFIC ISLANDS FORUM SECRETARIAT THE AUSTRALIAN OFFICE IS ON LEVEL 11, 171 CLARENCE STREET, GPO BOX 5407, SYDNEY NSW AUSTRALIA 2001. EDITOR: SALLY GIBSON TEL: (612) 9290 2133 • FAX: (612) 9299 2151 • EMAIL: [email protected] • INTERNET: www.pitic.org.au • ABN: 94072058220 THE CHANGE TO FOOD STANDARDS AUSTRALIA NEW ZEALAND The Australia New Zealand Food Authority (ANZFA) will change its to the Ministerial policy guidelines when it develops or reviews name later this year to Food Standards Australia New Zealand food standards. (FSANZ). Its Board membership and the way that it develops standards will also change. Coverage of the whole food supply chain These changes are part of a broader package of reforms to the food The new arrangements are also intended to bring together, for the regulatory system in Australia. This has been brought about by the first time, standards for the food manufacturing industry and signing of a new inter-governmental Food Regulation Agreement; standards for primary producers. proposed changes to the Australia New Zealand Joint Food Standards Treaty; and amendments to the Australia New Zealand Food Deciding on standards Authority Act 1991. Unlike ANZFA, FSANZ will have responsibility for approving It is expected that the new arrangements will be implemented mid- standards, and variations to standards, then notifying the year 2002. There are a number of ways in which the new food Ministerial Council of any approval. The Ministerial Council may regulatory arrangements will affect ANZFA. then reject, amend or seek a review of any standard notified to it by FSANZ. Separation of policy from standards One of the principal changes to the food regulatory system is the Some things won’t change implementation of new arrangements for the development of policy FSANZ will still develop food standards for Australia and New guidelines to apply to food standards. Previously all food standards Zealand. ANZFA staff will move over to the new organisation. policies were developed by the ANZFA Board, having regard to the broader policies and objectives of government. When the new system Reflecting its name change, FSANZ will have a new web and email commences, the new Australia and New Zealand Food Regulation address: www.foodstandards.gov.au and www.foodstandards.govt.nz. Ministerial Council (Ministerial Council) will decide on policy In developing food standards, FSANZ will still be charged with the guidelines based on advice from a new Food Regulation Standing same statutory objectives of: Committee comprising senior government officials from the Australian • protecting public health and safety; and New Zealand governments, including the states and territories. • providing adequate information to consumers to enable Once the Ministerial Council has decided on policy guidelines, these consumer choice; and will be published on the FSANZ websites. FSANZ must have regard • preventing misleading and deceptive conduct.

supply chain so that a common agreed strategy can be developed ELECTRONIC TRADE and implemented using the relevant international standards. Earlier in the year, representatives from eleven Pacific Island Small enterprises can use the Tradegate ECA service to access countries met in Nadi as part of a Workshop to discuss how the sophisticated electronic messaging systems, which until today region can benefit from information technology (IT) in their effort have been restricted to larger companies with their own software to enhance trade and investment performance in the region. developers or access to purpose-built third-party software. No This was part of a UN_ESCAP sponsored project. The project software is required by the small user other than access to the began with a research paper on the IT readiness of the Pacific Internet and a web browser such as Netscape Navigator or Islands, within the context of trade and development. This was Microsoft Internet Explorer. reviewed and assessed at the beginning of the Workshop. Small users can comply with the technical requirements of larger The aim of the Workshop was to develop a common ‘regional’ trading hubs such as the Australian Customs Service, without vision on how to use IT to facilitate trade and investment. extensive development and testing, and at very low initial development cost. The service is available on a prepaid Participants thought that the establishment of a Pacific Regional subscription basis. Trade Gateway could have great benefit to regional trade Tradegate ECA has developed this service as a means of development. At this time, the Cook Islands are interested in promoting the use of electronic trading techniques throughout pursuing the idea at the regional level. Other country the trading community, and especially to bring the benefits of representatives expressed less certainty about its feasibility for their these techniques within the reach of small business. country, while some are interested in exploring the idea at the national level. In all cases, the group felt that they needed additional information, particularly on the costs and benefits of Ocean Carriers such an initiative. The group identified additional information needed to make an informed decision on the feasibility and desirability of such an Terminals/Wharfs initiative for the Pacific region. The group also agreed that wider consultations with all stakeholders, particularly exporters and importers, at the national TRADEGATE level would be useful. BUREAU Email www.tradegate.org.au Australia’s Tradegate Fax An Australian organisation called Tradegate ECA (www.tradegate. org.au) was presented to participants as an example of a Trade Gateway. A tradegate facilitates the use of electronic commerce techniques for the exchange of information between customers and their suppliers. Tradegate ECA is a not-for-profit, government, user organisation, headquartered in Sydney, Australia. It brings Rail Operators Exporters together all the different types of organisations involved in each Consolidators PUBLIC AFFAIRS Trade Terms TRAINING IN VANUATU The ICC has developed Incoterms to make international trade PITIC and the Vanuatu Investment Promotion Authority (VIPA) easier and help traders in different countries to understand one sponsored a workshop on Public Affairs in Port Vila in early May. another through common standards. “The Workshop provided a great opportunity for a range of Below are three Incoterms explaining the obligations of buyers and government organisations involved in foreign investment in Vanuatu to learn about issues management, media management sellers. It is essential to use Incoterms correctly. These standard skills and effective ways of communicating with a wide range of trade definitions are most commonly used in international interest groups,” the Chief Executive Officer of VIPA, Mr Howard contracts. Aru, said. EXW: “Ex works” means that the seller delivers when he places The Workshop was facilitated by Ms Sally Gibson, Public Affairs and Information Programme (PAIP) Coordinator at the Commission. the goods at the disposal of the buyer at the seller’s premises or “Government organisations and the private sector increasingly another named place (i.e. works, factory, warehouse, etc.) not have to address a wide range of issues which can have an impact on cleared for export and not loaded on any collecting vehicle. their core business,” Ms Gibson said. This term thus represents the minimum obligation for the seller “These can range from environmental, gender, multicultural, and the buyer has to bear all costs and risks involved in taking the ethical, legal and regulatory issues. The way organisations manage or fail to manage such issues can have an impact on their business goods from the seller’s premises. activities, operational performance (including profitability) and However, if the parties wish the seller to be responsible for the their reputation (public perception),” she said. loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale. This term should not be used when the buyer cannot carry out the export formalities directly or indirectly. In such circumstance the ‘free carrier’ term should be used, provided the seller agrees that he/she will load at his/her cost and risk. FCA: “Free Carrier” means that the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery The Workshop was informal and interactive with participants given has an impact on the obligations of loading and unloading the the opportunity to discuss and manage hypothetical scenarios goods at that place. If delivery occurs at the seller’s premises, the involving issues effecting their organisations. Participants had to seller is responsible for loading. If delivery occurs at any other develop strategies to manage their relations and communications place, the seller is not responsible for unloading. with their key stakeholders or the people affected by the issue at hand. Fourteen people attended the Workshop representing a range of This term may be used irrespective of the mode of transport, government and business organisations in Vanuatu, including including multimodal transport. “Carrier” means any person who, VIPA, the Chamber of Commerce and Industry, the Ni-Vanuatu in a contract of carriage, undertakes to perform or to procure the Business Development Centre and the Departments of Trade, performance of transport by rail, road, air, seas, inland waterway or Fisheries, Labour, Customs and Forestry. by a combination of such modes. If the buyer nominates a person other than a carrier to receive the EXPORT AND INVESTMENT goods, the seller is deemed to have fulfilled his obligation to TRAINING IN FSM deliver the goods when they are delivered to that person. FAS: “Free Alongside Shipment” means that the seller delivers Carl Pemberton and Robyn Ekstrom conducted a Business Development, Export Planning and Project Profiling workshop in when the goods are placed alongside the vessel at the named port Pohnpei (FSM) in mid April. of shipment. This means that the buyer has to bear all costs and The workshop was organised in conjunction with the FSM’s risks of loss of or damage to the goods from that moment. Department of Economic Affairs, which facilitated and funded the The FAS term requires the seller to clear the goods for export. attendance of 20 participants sourced from all four States (Pohnpei, Kosrae, Yap and Chuuk). THIS IS A REVERSAL FROM PREVIOUS INCOTERMS The majority of the participants were public sector employees in VERSIONS, WHICH REQUIRED THE BUYER TO FSM. The workshop was practical in nature, and focused on the ARRANGE FOR EXPORT CLEARANCE. commercial viability and the development and documentation of business and export plans and project profiles. However, if the parties wish the buyer to clear the goods for Projects identified in the workshop included several food items, export, this should be made clear by adding explicit wording to including sashimi tuna, lime sauce and dolphin fish, and a number this effect in the contract of sale. of tourism facilities. Feedback from participants has been positive and the Commission has received several requests to hold the same This term can be used only for sea or inland waterway transport. workshop in each state. TRADE LINKS If you would like to advertise your product, business service, an export or import inquiry or an investment interest in Pacific Outlook, or our other newsletter, Pacific Online (which has 1,500 Australian- base readers), please contact Sally Gibson, Coordinator, Public Affairs and Information Programme. Please note that a small fee may be charged for this service.

What’s on 17 – 18 June 9 – 12 September Pacific Islands Air Services Agreement (PIASA) – First The Australian Supermarket & C-Store Exhibition, Negotiating Session, Fiji Mocambo Hotel, Nadi, Fiji Melbourne Exhibition & Convention Centre (AES) 2 – 4 July 25 – 27 October The Australian Investment & Financial Services Exhibition, Forum Economic Ministers Meeting, Port Vila, Vanuatu Melbourne Exhibition & Convention Centre (AES) 16 – 17 July For more information on Australian Exhibition Services (AES) ACP-EU Cotonou National Workshop, Tonga events please email: [email protected] 16 – 19 July Pacific Regional Trade Fair 2002 3rd ACP Heads of State Summit, Nadi, Fiji The Pacific Regional Trade Fair 2002 will be held in Apia, Samoa, during Teuila Week, 3 – 6 September. It is being hosted 9 – 12 September by the Samoa Association of Manufacturers and Exporters The 22rd Australian International Food, Drink Exhibition, with support from the Samoan Government. Melbourne Exhibition & Convention Centre (AES) If you would like more information on the Trade Fair or 9 – 12 September would like to register your interest please email Ms Joyce The Australian Hotel, Motel & Restaurant Equipment Scanlan, the Coordinator: [email protected] Exhibition, Melbourne Exhibition & Convention Centre (AES)

Pacific Plant Focus is the newsletter of the Pacific Islands Trade and Investment Commission, New Zealand. If you wish to receive a copy of Pacific Plant Focus with the next edition of Pacific Outlook, please contact Sally Gibson, Coordinator, Public Affairs and Information Programme. Email: [email protected] Telephone: (612) 9290 2133 Highlights from Biosecurity Australia’s work programme Biosecurity Australia is responsible for assessing the quarantine risk Crocodile meat (PNG) associated with commodity imports. All reference documents for Biosecurity Australia has developed an Animal Biosecurity Policy Import Risk Analysis are available on the Department of Memorandum on the proposed Australian quarantine requirements Agriculture, Fisheries and Forestry – Australia website: for the importing of Crocodile meat from Papua New Guinea www.affa.gov.au/biosecurity or www.affa.gov.au/plantbiosecurity. (www.affa.gov.au/animalbiosecurity). Comments on the proposal Below are highlights from Biosecurity Australia’s work programme would be appreciated and must be received by Biosecurity Australia involving the Pacific Islands. by 6 August 2002. Plant Biosecurity Import Risk Analysis Update Commodity Status Next Step Limes (New Caledonia) Technical assessment of pest lists being conducted. Technical issues paper Papaya (Fiji) Developed a system approach with Fiji’s Ministry for Agriculture Attempting to obtain market access for Fiji Papaya under existing policy with a and Forestry. package for fruit fly control, which includes high-temperature forced air treatment. Yam Beans (Samoa) Taken off the list and replaced with an IRA for mangoes. Replaced with a IRA for mangoes. Mangoes (Samoa) Placed on IRA list. IRA to commence. Persimmons (generic) Stakeholders advised of the outcome of the first round of consultation on scope, Technical issues paper timing and team membership on 23 April 2002. Appeals close on 24 May 2002. Pineapples (generic) Draft IRA paper released for stakeholder comment on 15 April 2002. Consideration of stakeholder comments in preparation of final IRA paper. Comments close on Friday 14 June 2002. Animal Biosecurity Import Risk Analysis Update Import risk analysis Status Next step Freshwater finfish (generic) Finalising technical issues paper. Release of technical issues paper. Bivalve molluscs (generic) Progress report issued following establishment of revised risk analysis panel Release of technical issues paper. (RAP), which met in February and May 2002. Prawns and prawn product (generic) Paper summarising stakeholder responses to the draft IRA report circulated Issue a progress report. in March 2002. Public workshop held in Brisbane on 21 May 2002. Pig semen (generic) RAP met on 21 March 2002 to consider late representations on post-weaning Public meeting to be held. Release of final IRA report multi-systemic wasting syndrome. Uncooked chicken meat (generic) Combined meeting of RAPs held in March and May 2002. Progress report to stakeholders. and egg and egg products (generic)