National Trade and Cultural Week Market, Solomon Islands.

Economic growth

2009/2010 Allocation: NZ$10.0 million

NZAID supports sustainable economic growth and trade at the regional level by funding a number of agencies and programmes that provide advice on economic reform and the management of public finances, and promote the development of trade in the Pacific.

The Regional Trade Facilitation Programme

New Zealand has committed to providing $1.5 million over five years to support the Regional Trade Facilitation Programme which was set up under the Pacific Agreement for Closer Economic Relations. The programme focuses on three areas: customs procedures, standards and conformance, and sanitary/phyto-sanitary (animal and plant hygiene) requirements.

Pacific Islands Trade and Investment Commitment

New Zealand provides funding to the Auckland Pacific Islands Trade and Investment Commission (PITIC). PITIC promotes trade, investment and tourism for Pacific countries and forms part of the wider Pacific Islands Forum Secretariat (ForSec) trade programme, which NZAID also supports through its core funding of ForSec.

Remittance information

The Remittance Information Website is designed to increase the transparency of remittance costs and encourage greater competition amongst remittance service providers. You can view the website here.

Other trade support

NZAID provides support to Statistics New Zealand for a helpdesk to assist several Pacific countries to use software to monitor trade statistics.

NZAID has supported Pacific attendance at the United Nations Food and Agriculture Organization amd World Trade Organization (WTO) roundtable meetings. The roundtable promotes awareness of issues around trade in agriculture and fisheries products.

To support Pacific negotiations on trade agreements, NZAID will make available funds to support trade education.

Pacific financial institutions

New Zealand continues to support the Pacific Private Enterprise Partnership (Pacific PEP – formerly Pacific Enterprise Development Facility), the Foreign Investment Advisory Service (FIAS) and the Suva-based Pacific Financial Technical Assistance Centre (PFTAC).

Pacific PEP supports the development of small and medium enterprises (SMEs) in a number of Pacific countries. A major focus of its work has been improving the access of SMEs to financial services, through working with commercial banks, credit unions and helping to establish the Pacific's first funds manager in Samoa.

The Foreign Investment Advisory Service seeks to improve the investment climate for all investors with a focus on regulatory simplification and investment generation. It advises governments on improving the environment for investment and business development. An example is the preparation of amendments to investment legislation in Solomon Islands which are likely to improve the climate for private sector development.

PFTAC assists countries to enhance skills and establish institutional capacity for the effective management of their economies. NZAID has made a renewed three-year commitment (FY08-10) of NZ$1.25 million per annum. PFTAC provides technical advice and capacity building to 15 Pacific island countries in four key areas: tax and customs policy, public financial management, financial sector supervision and regulation, and economic and financial statistics. Through NZAID support, the services of PFTAC will be further enhanced by the colocation of of two advisors with the centre by the World Bank.

The Pacific Islands Forum Secretariat is also involved in providing economic advice and policy development assistance through regional mechanisms such as the Forum Economic Ministers' Meeting and Forum Trade Ministers' Meeting.

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