Kiribati relies significantly on imported goods because of its modest size and lack of manufacturing capacity. There is a wide range of products that are imported, including food, machinery and equipment, and other manufactured commodities. Sixty-two percent of Kiribati’s total exports are copra, seaweed, and fish. A majority of Kiribati’s imports come from Australia (46%) and a small number of countries in Asia (Japan and New Zealand) as well as North America (the US). Exports totaled US$6 million in 1998, while imports totaled a whopping 37 million in the same year.
AUSTRALIA – KIRIBATI
Australia and Kiribati have strong and long-standing ties based on regional and international collaboration, trade links, a significant development assistance program, support for maritime surveillance and broader security cooperation, and people-to-people relationships.
Australia Awards
Through technical and vocational training and scholarships, Australia is assisting Kiribati in developing a skilled workforce (Australia Awards). I-Kiribati students can use these prizes to study at post-secondary institutions in the Pacific or Australia. They provide students with the necessary skills and information to contribute to Kiribati’s progress.
Every year, 30 to 55 I-Kiribati are supported by Australian scholarships to study at Australian or regional universities. With only a few postsecondary courses accessible in Kiribati, these scholarships are assisting the Kiribati government in meeting the country’s training and human resource development needs.
Volunteers
The Australian Volunteers program fosters economic growth and poverty reduction in the Indo-Pacific region by helping host organizations build the capacity they need to deliver successful and long-term development outcomes. The program provides a one-stop-shop for volunteering in Australia.
Trade and investments
In 2017, Australia exported $24 million worth of goods to Kiribati. Kiribati accepts Australian dollars as legal cash. The ANZ Bank owns the majority of the Bank of Kiribati, which is the country’s only bank and provides both central and retail banking services.
Pacific Island Countries Trade Agreement (PICTA)
PICTA is a key mechanism that 14 Pacific Island Countries (PICs) have agreed to use to foster regional cooperation and integration through trade. The Cook Islands, Federated States of Micronesia (FSM), Fiji, Kiribati, Nauru, Niue, Republic of Marshall Islands (RMI), Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu are all members of PICTA. PICTA was signed in 2001, and the agreement’s implementation began in 2007. Only seven countries, namely the Cook Islands, Fiji, Niue, Samoa, Solomon Islands, Tuvalu, and Vanuatu, have declared their willingness to trade under the PICTA and are now implementing the Agreement.
The combined population of the FIC is about 10 million people, making it a significant market for Fijian goods. In true Pacific spirit, Fiji will continue to assist other FICs in implementing the PICTA Trade in Goods Agreement. The PICs are now debating a review and amendment of the Trade in Goods Rules of Origin. This is to guarantee that the rules’ application is simple to comprehend and apply.
Pacific Agreement on Closer Economic Relations (PACER) Plus.
PACER Plus (Pacific Agreement on Closer Economic Relations Plus) is a free trade agreement that prioritizes development.
On December 13, 2020, PACER Plus went into effect. The Agreement includes New Zealand, Australia, Samoa, Tuvalu, Kiribati, Tonga, Solomon Islands, Niue, and the Cook Islands. The agreement has been signed but not approved by Nauru and Vanuatu.
PACER Plus is a key aspect of Australia’s Pacific engagement and gives a way to contribute to the region’s security, stability, and prosperity. In a variety of areas, PACER Plus will give business opportunities for Australian exporters and investors.
As the principles of the Agreement lead to more open and transparent policies and larger regional and international linkages, these opportunities will grow.
