ABSTRACT
Pacific Agreement on Closer Economic Cooperation (PACER) was formalised in Nauru on 18 August 2001, setting out an agreement that will pilot the direction of trade relations and economic development of the Forum members. The primary objectives of the agreement are anchored on the need to provide a sustainable trade and development mechanism for the 16 member states of the Forum. The agreement is to act as a platform for the gradual and continuous integration of the member states into the global economy. The guiding principles for Pacific economic integration assume a 'stepping stone' approach towards economic liberalisation and incorporation into the global economy. PACER has started on the assumption that liberalisation of trade is always a good thing. This assertion contrasts with the UN Development Report, which has highlighted the negative impact of globalisation of trade on developing countries.
