NZ, Australia Commit $10M to Boost Trade Under PACER Plus Regional Pact

New Zealand’s Minister of State for Trade and Investment, Nicola Grigg, said the investment reflects a shared desire to foster inclusive, sustainable trade across the Pacific region.

New Zealand and Australia have reaffirmed their commitment to deepening economic integration and trade-based growth in the Pacific by announcing a joint $10 million investment over five years in support of PACER Plus, the region’s leading rules-based trade agreement. The announcement was made at the 2025 PACER Plus Ministerial Meeting held in the Solomon Islands, marking five years since the agreement came into force.

A Renewed Commitment to Pacific Trade and Prosperity

The funding will help Pacific Island countries build trade resilience, expand exports, and boost development outcomes. New Zealand’s Minister of State for Trade and Investment, Nicola Grigg, said the investment reflects a shared desire to foster inclusive, sustainable trade across the Pacific region.

“We have committed $10 million over the next five years to enable Pacific PACER Plus countries to boost their export capability, grow and diversify trade in goods and services, attract investment, and increase the benefits of labour mobility,” said Minister Grigg.

She emphasized New Zealand’s pride in working alongside regional partners to strengthen trade frameworks and unlock economic opportunity.

What Is PACER Plus?

PACER Plus (Pacific Agreement on Closer Economic Relations Plus) is a landmark regional free trade and development agreement involving New Zealand, Australia, and nine Pacific Island nations:

• Cook Islands

• Kiribati

• Nauru

• Niue

• Samoa

• Solomon Islands

• Tonga

• Tuvalu

• Vanuatu

Entered into force in December 2020, PACER Plus aims to:

• Harmonise trade regulations across the Pacific

• Reduce barriers to goods and services trade

• Promote investment flows

• Facilitate labour mobility, particularly through New Zealand’s and Australia’s seasonal work schemes

• Provide development assistance tailored to the needs of smaller island economies

The New Support Package: Key Goals

The fresh $10 million investment is part of an Implementing Arrangement signed by PACER Plus members, and will support the Development and Economic Cooperation (DEC) Work Programme, which helps members implement the agreement.

Key outcomes from the funding include:

• Export capability building: Assisting Pacific exporters in meeting international standards, improving packaging and logistics, and navigating customs and border requirements.

• Trade diversification: Helping countries expand into new product and service markets.

• Regulatory harmonisation: Streamlining trade-related laws, standards, and certifications across member countries.

• Investment promotion: Attracting private sector investment in priority sectors such as agriculture, fisheries, tourism, and renewable energy.

• Labour mobility enhancement: Supporting training, upskilling, and safe migration practices under regional labour schemes.

Addressing Economic Challenges Together

Minister Grigg said the renewal of support was timely, as the region faces a range of economic pressures—including those brought on by climate change, rising global trade costs, and post-pandemic recovery.

“By ensuring all parties get the best out of PACER Plus we are better positioned as a region to respond to economic challenges as they arise,” she said.

Minister of Commerce and Consumer Affairs Scott Simpson, who represented New Zealand at the Solomon Islands ministerial event, confirmed the investment on behalf of the Government and reiterated the country’s commitment to regional prosperity through trade.

A Shared Path Forward

PACER Plus is viewed not just as a trade agreement, but as a platform for regional development and integration, rooted in cooperation, capacity building, and shared prosperity. The announcement builds on the momentum achieved since 2020 and reinforces the collective ambition of Australia, New Zealand, and the Pacific to strengthen the region’s economic foundations.