The Melanesian Spearhead Group (MSG) Preferential Trade Agreement is a trade treaty governing the four melanesian states of Vanuatu, Papua New Guinea, the Solomon Islands and recently, Fiji. A Preferential Trade Area is a Trading bloc which gives preferential access to certain products from the participating countries A trade pact is a wide ranging Tax tariff and trade pact that often includes Investment guarantees Melanesia (from Greek: μέλας black, νῆσος island) means "islands of the black-skinned people" Vanuatu, officially the Republic of Vanuatu ( French: République de Vanuatu, Bislama: Ripablik blong Vanuatu) is an Island Papua New Guinea (or ˈpæpjuːə in Tok Pisin: Papua Niugini) officially the Independent State of Papua New Guinea, is a country in Oceania The Solomon Islands is a country in Melanesia, east of Papua New Guinea, consisting of nearly one thousand islands Fiji (Matanitu ko Viti फ़िजी officially the Republic of the Fiji Islands (Matanitu Tu-Vaka-i-koya ko Viti फ़िजी द्वीप समूह गणराज्य

The MSG Trade Agreement signed in 1993 is a sub-regional trade treaty established to foster and accelerate economic development through trade relations and provide a Political framework for regular consultations and review on the status of the Agreement, with a view to ensuring that trade both in terms of exports and imports is undertaken in a genuine spirit of the Melanesian Solidarity and is done on a Most Favoured National (MFN) basis. Economic development is the development of economic wealth of countries or regions for the well-being of their inhabitants In Economics, an export is any good or Commodity, Transported from one country to another country in a Legitimate fashion International trade is exchange of Capital, Goods, and Services across International borders or Territories. Most favoured nation (MFN also called Normal Trade Relations in the United States, is a status awarded by one Nation to another in International

The MSG Trade Agreement is GATT consistent and has recently been approved and accorded recognition by the World Trade Organisation (WTO) Committee on Regional Arrangements to be compatible and meeting the requirements of Article 24 of the GATT/WTO Agreement. The 'General Agreement on Tariffs and Trade' (typically abbreviated 'GATT' was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO

This Agreement covers over 180 tariff lines of the Harmonised Systems of Customs Tariff Code and is consistent to agreed trade rules and obligations. For other uses of this word see Tariff (disambiguation. A tariff is a tax imposed on goods when they are moved across a political boundary

Negotiations are held regularly between the leaders of the four countries to consider the progress and developments of the MSG Trade Agreement.

The MSG Trade Agreement is by and large, the most effective sub-regional economic cooperation arrangement between the four countries and is likely to include issues of Intellectual Property Rights and Trade-in-Services as we approach the new millennium. Intellectual property ( IP) is a legal field that refers to creations of the mind such as musical literary and artistic works inventions and symbols names A service is the non-material equivalent of a good. A service provision is an economic activity that does not result in Ownership, and this is what differentiates

Solomon Islands, Papua New Guinea and Fiji are members of the WTO. The Government of Vanuatu is also currently negotiating its accession with member governments of the Multilateral Trading System for membership into the World Trade Organisation (WTO). Politics of Vanuatu, takes place in a framework of a parliamentary representative democratic Republic, whereby the Prime Minister of Vanuatu

The MSG countries have the potential to trade in over 200 products free of fiscal duty. See also Taxation, Indirect Tax In Economics, a duty is a kind of Tax, often associated with Customs, a payment due to the The MSG countries are also spearheading the MSG Free Trade Area as a nucleus for progressing trade liberalisation in the region, as a forerunner for a proposed Forum Island Country (FIC) Trade Agreement. See also List of free trade agreements This is article is on free international trade Free trade is a system in which the trade of goods and services between or within countries flows unhindered by government-imposed restrictions

Members

Melanesian Spearhead Group members

• Papua New Guinea (1993)
• Solomon Islands (1993)
• Vanuatu (1993)
• Fiji (1998)

History

The MSG Trade Agreement entered into effect on 22 July 1993 through the efforts of Papua New Guinea, Vanuatu and Solomon Islands. Papua New Guinea (or ˈpæpjuːə in Tok Pisin: Papua Niugini) officially the Independent State of Papua New Guinea, is a country in Oceania The Solomon Islands is a country in Melanesia, east of Papua New Guinea, consisting of nearly one thousand islands Vanuatu, officially the Republic of Vanuatu ( French: République de Vanuatu, Bislama: Ripablik blong Vanuatu) is an Island Fiji (Matanitu ko Viti फ़िजी officially the Republic of the Fiji Islands (Matanitu Tu-Vaka-i-koya ko Viti फ़िजी द्वीप समूह गणराज्य Events 1099 - First Crusade: Godfrey of Bouillon is elected the first Defender of the Holy Sepulchre of The Kingdom of Year 1993 ( MCMXCIII) was a Common year starting on Friday (link will display full 1993 Gregorian calendar) At the 6th Melanesian Spearhead Group (MSG) Trade and Economic Officials’ Meeting on 16 April 1997 in Honiara, the Fiji delegation indicated its willingness to accede to the MSG Trade Agreement. Events 1178 BC - A Solar eclipse may have marked the return of Odysseus, legendary King of Ithaca, to his kingdom Year 1997 ( MCMXCVII) was a Common year starting on Wednesday (link will display full 1997 Gregorian calendar Honiara, population 49107 (1999 54600 (2003 est is the Capital of the Solomon Islands and of Guadalcanal Province, although it is a separately administered This initiative was endorsed at the 1997 MSG Leaders Summit. Fiji became a formal member of the MSG Trade Agreement on 14 April 1998. Events 43 BC - Battle of Forum Gallorum: Mark Antony, besieging Julius Caesar 's assassin Decimus Junius Brutus in Year 1998 ( MCMXCVIII) was a Common year starting on Thursday (link will display full 1998 Gregorian calendar)

The 9th MSG Trade & Economic Officials meeting was held in Papua New Guinea on 29th & 30th November 2000. This meeting saw the acceptance of the expansion of the MSG Product Schedule tariff headings from four digit to six digits, thereby facilitating MSG trade by removing the ambiguity in product identification at Customs points of entry. The commitment among members to progress the MSG Trade Agreement towards WTO compliance, via negative listing by 2003/2005, was also reinforced.

See also

• Pacific Island Countries Trade Agreement (PICTA)
• Pacific Island Countries Agreement on Closer Economic Relations (PACER)
• Pacific Islands Forum and its Pacific Regional Trade Agreement (PARTA)
• South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA)

External links

• Melanesian Spearhead Group (MSG) trade agreement