Table of Content
Declaration of Originality 2
Economic Integration: Definition 5
Background of Free Trade in the South Pacific 6
Advantages and benefits of Economic Integration 9
Drawbacks of Regional Economic Trade 11
Declaration of Originality
We declare that this is our original work and all borrowed works had been cited and referenced.
s11061729 Elizabeth Pearl Blakelock
s11074679 Ranjeeta Devi
s93005349 Mosese Vosarogo ...view middle of the document...
Afterwards, we will bring to light our analysis on the positive implications of free trade amongst our small pacific island countries as well as some of the drawbacks of such agreements. In completing the project, our group had undertaken to shift our emphasis to the roles of PICTA and PACER and then zone in on their implications to our small islands economies. Our aim is to bring in some fresh and prevailing concerns so we researched into secondary sources online and available printed materials to help us with our findings. We also threw some off the cuff questions to certain Lectures in our Laucala campus just to get their professional opinion to help us. We took to some personal interviews and a snap market observation trip around the Suva- Nausori corridor. We conducted 3 flexible personal interviews with 2 Managers of our local supermarkets and one with the Manager of a major Multinational business, Cost-U-Less. Our approach was significantly very flexible and precise so to bring us to some firsthand understanding of the real answer as to endorse or resent regional free trade amongst us especially under PICTA and PACER. In the end of the essay, we hope to clarify that free trade under PICTA and PACER needed some conceptual readjustments in a few areas to cover our small economies and solidify our standings now for the future.
Economic Integration: Definition
Theoretically, there are several levels of economic integration. These range from the least integrated to the most integrated and are: free trade, a customs union, a common market, an economic union and a full political union (DLGH, 2010, p.269).
The idea in a free trade level is that all barriers in trading of goods and services amongst member countries are removed, so that no discriminatory tariffs, quotas, subsidies, country specific criteria for imported goods or any other government-related costs will hinder the free flow of trade between member countries. Individual countries are however, authorised to establish their own appropriate trade policies regarding non-members. An example of a free trade area is the European Free Trade Association (EFTA) , established in 1960, joining Norway, Iceland, Liechtenstein and Switzerland.
The justification for Economic Integration is based on both economic and political reasons. Predictably, such justification is not well received by many countries, thus explaining why the attempts for regional economic integration are controversial and faltering (DLGH P.271). Nevertheless, the argument for regional economic integration is straightforward: international trade theories envisage that "free trade will allow countries to specialise in the production of goods and services that the can produce most efficiently", resulting in increased world production that would be impossible without free trade (DLGH, 2010, p.271).
In light of our objective, we attempted to realize the applicability of economic integration in the South...