T RADE IN THE R EPUBLIC OF M ARSHALL I SLANDS Ministry of
Resources & Development Division of Trade & Investment
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OUTLINE OF PRESENTATION General Overview Trade Agreements &
Benefits for Investors Pacific Agreement on Closer Economic
Relations (PACER Plus) Pacific Island Countries Trade Agreement
Treaty Establishing the Micronesian Trade and Economic Community
Comprehensive Economic Partnership Agreement US Compact Potential
Investment Partnerships General Overview Trade Agreements &
Benefits for Investors Pacific Agreement on Closer Economic
Relations (PACER Plus) Pacific Island Countries Trade Agreement
Treaty Establishing the Micronesian Trade and Economic Community
Comprehensive Economic Partnership Agreement US Compact Potential
Investment Partnerships
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GENERAL OVERVIEW- INVESTMENT ENVIRONMENT Gateway to the North
Pacific Nexus for South Pacific Nexus to the US Market (Hawaii and
Mainland USA) Liberal Investment Environment Tax Holidays for
sectors Closer to Asia Market Political Stability NSP (2015-2017)
focuses on Private sector development Gateway to the North Pacific
Nexus for South Pacific Nexus to the US Market (Hawaii and Mainland
USA) Liberal Investment Environment Tax Holidays for sectors Closer
to Asia Market Political Stability NSP (2015-2017) focuses on
Private sector development
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TRADE AGREEMENTS & BENEFITS US-Compact Agreement ACCESS TO
UNITED STATES What are the Offers under US-Compact Agreement With
exception of few products, all products exported from the RMI into
the US is duty free under the Compact of Free Association of 1985.
Rules of Origin 35% US-Compact Agreement ACCESS TO UNITED STATES
What are the Offers under US-Compact Agreement With exception of
few products, all products exported from the RMI into the US is
duty free under the Compact of Free Association of 1985. Rules of
Origin 35%
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PICTA TRADE IN SERVICES Services Access to the Pacific Market
Under this the private sector in Fiji are provided the opportunity
to invest in the following sectors of interest which is open for
investment. These include the following: Business Services
(Professional Services, Compute & Related Services, Research
and Development Services, Rental/leasing services) other business
services (Advertising services, market research & public
opinion polling services, management consulting services, services
related to management, technical testing and analysis services,
services incidental to agriculture, hunting & forestry)
Services incidental to fishing, Services incidental to mining,
Services incidental to manufacturing, Placement and Supply
services, investigation and security, photographic services,
packaging services, printing, publishing, convention services.
Services Access to the Pacific Market Under this the private sector
in Fiji are provided the opportunity to invest in the following
sectors of interest which is open for investment. These include the
following: Business Services (Professional Services, Compute &
Related Services, Research and Development Services, Rental/leasing
services) other business services (Advertising services, market
research & public opinion polling services, management
consulting services, services related to management, technical
testing and analysis services, services incidental to agriculture,
hunting & forestry) Services incidental to fishing, Services
incidental to mining, Services incidental to manufacturing,
Placement and Supply services, investigation and security,
photographic services, packaging services, printing, publishing,
convention services.
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PICTA SERVICES SECTOR Communication Services: Audio visual
services, motion picture and video tape production and distribution
services, radio and television services, radio and television
transmission. Distribution Services: Commission Agents Services.
Education Services: Primary, Secondary, Higher Education and Adult
Education Services. Environmental Services. Financial Services:
Banking and other financial sectors. Health Related and Social
Services: Hospital Services and Other human health services.
Tourism & Travel Related Services: Hotel & restaurant
services (including catering), travel agencies, tour operators,
tourist guide services. Recreational, Cultural & Sporting
Services: Entertainment Services, News Agency Services, Sporting
and other recreational services. Maritime Transport Services. Air
Transport Services: Passenger transportation, Freight
transportation, rental and aircraft with crew, maintenance and
repair of aircraft, supporting services for air transport. Services
auxiliary to all modes of transport: cargo handling services,
storage and warehouse services, freight transport agency services.
Communication Services: Audio visual services, motion picture and
video tape production and distribution services, radio and
television services, radio and television transmission.
Distribution Services: Commission Agents Services. Education
Services: Primary, Secondary, Higher Education and Adult Education
Services. Environmental Services. Financial Services: Banking and
other financial sectors. Health Related and Social Services:
Hospital Services and Other human health services. Tourism &
Travel Related Services: Hotel & restaurant services (including
catering), travel agencies, tour operators, tourist guide services.
Recreational, Cultural & Sporting Services: Entertainment
Services, News Agency Services, Sporting and other recreational
services. Maritime Transport Services. Air Transport Services:
Passenger transportation, Freight transportation, rental and
aircraft with crew, maintenance and repair of aircraft, supporting
services for air transport. Services auxiliary to all modes of
transport: cargo handling services, storage and warehouse services,
freight transport agency services.
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PACIFIC AGREEMENT ON CLOSER ECONOMIC RELATIONS (PACER) Free
Trade Agreement between Pacific Island Countries and Australia and
New Zealand Fiji and RMI are also part of this negotiations
Consultations with Private Sector Whats in this trade agreement for
Fiji and RMI? Rules of Origin by specific product lines, duty free
access for goods Trade in Services: Joint venture, partnership, etc
Investment: Investor protection and investment promotion Trade in
Goods: opportunity to trade Free Trade Agreement between Pacific
Island Countries and Australia and New Zealand Fiji and RMI are
also part of this negotiations Consultations with Private Sector
Whats in this trade agreement for Fiji and RMI? Rules of Origin by
specific product lines, duty free access for goods Trade in
Services: Joint venture, partnership, etc Investment: Investor
protection and investment promotion Trade in Goods: opportunity to
trade
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TREATY ESTABLISHING THE MICRONESIAN TRADE AND ECONOMIC
COMMUNITY The MTEC is a very recent sub-regional grouping of the
Freely Associated States of Micronesia (FAS). Similar to MSG. In
early stages of development and in future may also provide
opportunities for private sector to trade with the FAS. The MTEC is
a very recent sub-regional grouping of the Freely Associated States
of Micronesia (FAS). Similar to MSG. In early stages of development
and in future may also provide opportunities for private sector to
trade with the FAS.
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TREATY ESTABLISHING THE MICRONESIAN TRADE AND ECONOMIC
COMMUNITY 1. Investment borrowing: 2. Foreign Exchange
Availability: 3. Repatriation of Funds: 4. Access to Land: 5.
Investor Protection: 6. Investor Dispute 1. Investment borrowing:
2. Foreign Exchange Availability: 3. Repatriation of Funds: 4.
Access to Land: 5. Investor Protection: 6. Investor Dispute
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P OSSIBLE P ARTNERSHIPS Coconut Sector What do we already have?
A company (Tobolar) producing VCO and copra. In future, a
manufacturing company producing coconut furniture. Coconut Sector
What do we already have? A company (Tobolar) producing VCO and
copra. In future, a manufacturing company producing coconut
furniture. SectorProductDuty RateRoOMarket Coconut Sector Coconut
furniture 0% 35% qualify-WO USA ANZ/ other Pacific Virgin Coconut
oil 0%35% Qualify-WO USA ANZ/other Pacific Coconut Soap0%35%
Qualify-WO USA ANZ/Other Pacific
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POSSIBLE PARTNERSHIPS Hydroponic Farming: Vegetable Exports
What do we have? Potential to commence large scale farming ventures
in fruits and vegetables and exporting to the markets, USA, Pacific
and ANZ. Hydroponic Farming: Vegetable Exports What do we have?
Potential to commence large scale farming ventures in fruits and
vegetables and exporting to the markets, USA, Pacific and ANZ.
SectorProductDuty RateRoOMarket AgricultureFruits, Vegetables and
live stock pandanus 0%35% qualify-WO USA ANZ/ other Pacific FAS
states
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POSSIBLE PARTNERSHIPS Noni Sector What we have? Noni Juice
Manufacturing Noni Sector What we have? Noni Juice Manufacturing
SectorProductDuty RateRoOMarket Noni SectorNoni Juice0% 35%
qualify-WO USA ANZ/ other Pacific Noni Soap0%35% Qualify-WO USA
ANZ/other Pacific Noni Tea0%35% Qualify-WO USA ANZ/Other
Pacific
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P OSSIBLE P ARTNERSHIPS Fisheries Sector What do we have?
Potential for manufacturing company on exports of fresh, frozen and
chilled fish Fisheries Sector What do we have? Potential for
manufacturing company on exports of fresh, frozen and chilled fish
SectorProductDuty RateRoOMarket Fisheries SectorFresh, Frozen and
Chilled Fish 0% qualify-WOUSA ANZ/ other Pacific
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POSSIBLE PARTNERSHIPS Handicraft Sector What do we have? RMI
has the most fine handicrafts in the Pacific. Potential for sales
and exports in high end niche markets. Partnership is welcomed in
Handicraft retail sales. Handicraft Sector What do we have? RMI has
the most fine handicrafts in the Pacific. Potential for sales and
exports in high end niche markets. Partnership is welcomed in
Handicraft retail sales. SectorProductDuty RateRoOMarket Handicraft
Sector Handicrafts0% 35% qualify-WO USA ANZ/ other Pacific Jewelry
with handicrafts 0%35% Qualify-WO USA ANZ/other Pacific
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POSSIBLE PARTNERSHIPS Bottled Water What do we have already? A
company (Pacific Pure Water) producing water which has the
potential for new companies to form joint venture or partnership.
Bottled Water What do we have already? A company (Pacific Pure
Water) producing water which has the potential for new companies to
form joint venture or partnership. SectorProductDuty RateRoOMarket
ManufacturingBottled Water0% 35% qualify-WO USA ANZ/ other Pacific
Bottled Pandanus juice 0%35% Qualify-WO USA ANZ/other Pacific
Bottled Coconut water 0%35% Qualify-WO USA ANZ/Other Pacific
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POSSIBLE PARTNERSHIPS Flour What we have? Manufacturing company
to produce flour, biscuits and other products Flour What we have?
Manufacturing company to produce flour, biscuits and other products
SectorProductDuty RateRoOMarket ManufacturingFlour0% 35% qualify-WO
USA ANZ/ other Pacific Breadfruit flour0%35% Qualify-WO USA
ANZ/other Pacific Biscuits0%35% Qualify-WO USA ANZ/Other
Pacific
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POSSIBLE PARTNERSHIPS Cement What we have? Establishing a
cement factory and exporting Cement What we have? Establishing a
cement factory and exporting SectorProductDuty RateRoOMarket
ManufacturingCement0% 35% qualify-WO USA ANZ/ other Pacific
Bricks0%35% Qualify-WO USA ANZ/other Pacific
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POSSIBLE PARTNERSHIPS Tourism Sector SectorServicesMarket
TourismHotels, ResortsUSA ANZ/ other Pacific Asia Diving/ Tour
operationsUSA ANZ/other Pacific, Asia Tourist boat cruise hotelsUSA
ANZ/Other Pacific,Asia
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CONCLUSION What RMI has: Market Access to US, Pacific, possible
EU, ANZ, possible Asia through MTEC discussion. An investor can
therefore establish commercial presence in RMI and access all the
different markets from one location, thus greater coverage for
products and services. With market access opportunities, especially
under the US Compact Arrangement and agreements such as PACER Plus
and PICTA, great potential is there to bring the North Pacific
trade and commerce closer to the South Pacific We look forward to
the partnership of the Fiji and RMI private Sector. What RMI has:
Market Access to US, Pacific, possible EU, ANZ, possible Asia
through MTEC discussion. An investor can therefore establish
commercial presence in RMI and access all the different markets
from one location, thus greater coverage for products and services.
With market access opportunities, especially under the US Compact
Arrangement and agreements such as PACER Plus and PICTA, great
potential is there to bring the North Pacific trade and commerce
closer to the South Pacific We look forward to the partnership of
the Fiji and RMI private Sector.
