Fiji within the CER

Abstract

Given the global tendency towards regionalism, should a small island nation such as Fiji join the Closer Economic Relations (CER) trade agreement between Australia and New Zealand? In this paper it is argued that, under the assumption that the Asia Pacific region will have free trade by the year 2020 under the auspices of APEC, it is imperative that Fiji join the CER now. Such a move is likely to entail short-term costs. While in the medium term such adjustment costs are inevitable for Fiji only such a policy would be pareto improving for all participants in the long run. Show more