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Interesting Thoughts on the Vanuatu Kava Industry by their Prime Minister

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kasa_balavu

Yaqona Dina
http://dailypost.vu/news/vanuatu-to...cle_58e26eaa-c142-57ab-bee5-9d306554f7aa.html

The headline is about Vanuatu hoping to negotiate with Australia for market access for their kava or funding for the industry in Vanuatu if Australia refuses, but there is a lot of other interesting stuff mentioned in the article.

There are a number of issues still to be discussed further with Australia under the PACER Plus trade agreement Vanuatu signed nearly two weeks ago, such as normal visa arrangements, which will be subject to bilateral discussions with Australia.

Prime Minister, Charlot Salwai who signed the agreement, says kava is another one.

“Kava is a main concern to many of us in Vanuatu who want us to enter the market in Australia with our kava,” the Prime Minister says.

“At the same time, we know that Australia has a very strong health concern over kava that makes it difficult for our kava to enter the Australian market. They consider kava as a drug, which they do not want it to enter areas such as the Northern Territory mainly because they want to protect the Aboriginese communities who already have major issues with alcohol and kava would compound the situation for them,” he adds.

“On the other side as part of the trade negotiation we could say that if our kava cannot enter Australia, in return we could negotiation a development budget support from them to help us development our kava sector, which still faces challenges.

“One is infrastructure, which we need to develop to increase production of kava. Roads to land that are fertile should be developed or improved so we can produce more kava. We could also negotiate assistance to mechanize this primary industry, which today with just manual labor we cannot expect to be able to supply every market we have.

“While we negotiate this with Australia, we already cannot supply the existing markets that we have in countries of the Pacific such as New Caledonia and in Europe, which we know is open again already.

“We have more to do internally on how we can assist growers of kava to plant more and plant enough for their own use also. Over production will be good because we can supply these to other places. It is our goal today because the price of kava has really gone up.”

Prime Minister Salwai points to another increasing concern about not producing enough “because now we are seeing more and more foreigners entering the business of planting kava and this is a concern because they could take over this business from the ni-Vanuatu.

“Foreigners are entering the kava business including processing and I think this should be only in the hands of ni-Vanuatu.

“It is good to review legislation to ensure this business is a reserved business for only ni-Vanuatu. There are also naturalised citizens, but i believe the sector should be protected for indigenous ni-Vanuatu.”

There is also the concern that as the price of kava is now rising, more and more ni-Vanuatu will be moving to consuming more alcohol and this will drastically affect the kava bars.

In Vanuatu’s first negotiation with Australia, request was made to Australia to give the country Vt50 million to support: 1) a laboratory that the country needs to help solve kava quality issues and 2) to set up the country’s own processing facilities locally “because we are not engaging in value adding, as a result we are not receiving the full value of kava.”

The Prime Minister wants Vanuatu move away from continuing to send kava chips outside, which he says will not help the country, but to produce kava power that people could just mix with water and drink or kava pills that people could just take.

“This is a sector we will continue to develop through the Ministry of Trade and Ministry of Agriculture for production and processing is something we want to pursue because with PACER Plus, this is an area we can negotiate for.”
 

verticity

I'm interested in things
That is interesting, but I don't quite understand what leverage Vanuatu thinks it has in this negotiation. The PM seems to be saying, "if Australia refuses to allow kava imports, we will retaliate by asking them to fund our kava development projects.." What is Australia's incentive to do either of those things? Is the PM implying he will give Australia a better deal on things like fish that Vanuatu does export to Australia, if Australia gives more aid for kava development?
 

kastom_lif

Kava Lover
You're right, Verticity. Where's the leverage?

PACER is pretty deep and complicated. Maybe they're already locked into funding SOME sort of development?

If they want to offer Australia a carrot, maybe consider the tourism sector. Does PACER affect visas? Of course, attracting even more Aussie expats is a double edged sword. They bring money, but they also displace local businesses and culture.

Random afterthought: if PACER makes the pacific into a sort of mini-Schengen zone, how would it affect niVan labourers in Oz? Some niVan already travel to New Zealand for farm work. Imagine if they started working FIFO in Australian mines... Good money, but holy cow is it a rough job.
 

kasa_balavu

Yaqona Dina
That is interesting, but I don't quite understand what leverage Vanuatu thinks it has in this negotiation.
Australia and NZ benefit much much more than any of the individual Pacific Island nations in any free trade agreement. There is a massive trade imbalance in their favour. AU/NZ are the ones pushing to get these countries to sign on to Pacer Plus, not the other way around.

They banned the import of kava into Australia just because that was easier than controlling its movement into Northern Territory (AFAIK the only place where there was abuse of kava in Aboriginal communities). That's not an acceptable reason for the trade restriction, and I'm glad Vanuatu is pushing back.

Note that the two largest nations PNG and Fiji have refused to sign on so far, which might be why Vanuatu is now getting cold feet. I wish Fiji would join Vanuatu in asking for the kava restrictions to be lifted as one of the preconditions for Pacer Plus negotiations to proceed.

There's another angle to this as far as leverage is concerned: China.
China has been making a massive push into the Pacific over the past decade, ramping up aid and investment in the region. AU/NZ don't like this incursion into what they've always considered their backyard, are pushing back, and Pacer Plus is just one of the arrows in their quiver.

NOTE: These are just around-the-tanoa thoughts. I have no special knowledge in this area.
 

kasa_balavu

Yaqona Dina
If they want to offer Australia a carrot, maybe consider the tourism sector. Does PACER affect visas? Of course, attracting even more Aussie expats is a double edged sword. They bring money, but they also displace local businesses and culture.

Random afterthought: if PACER makes the pacific into a sort of mini-Schengen zone, how would it affect niVan labourers in Oz? Some niVan already travel to New Zealand for farm work. Imagine if they started working FIFO in Australian mines... Good money, but holy cow is it a rough job.
AFAIK the visa-free access being requested by Vanuatu is just the regular visitor visa.
Australia and NZ (and most other developed countries) have visa-free entry into Vanuatu, Fiji, Samoa, etc. An aussie wanting to visit Fiji can just jump on a plane and get his passport stamped by Fiji immigration at the airport here. The other way around isn't so simple. We have to fill out application forms, wait between a week and two months depending on time of year, and then find out if we've been granted visas.

All Vanuatu is asking for is reciprocity. BTW Vanuatu, Samoa, and a handful of other PI nations (not Fiji :cry:) have this visa-free entry into the EU Schengen area, but their own PI neighbors fear over-stayers too much I guess.

AFAIK This wouldn't affect work visas or any of the current farm labour schemes, or change anything with regard to aussie expat workers in Vanuatu.
 
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verticity

I'm interested in things
Australia and NZ benefit much much more than any of the individual Pacific Island nations in any free trade agreement. There is a massive trade imbalance in their favour. AU/NZ are the ones pushing to get these countries to sign on to Pacer Plus, not the other way around.

They banned the import of kava into Australia just because that was easier than controlling its movement into Northern Territory (AFAIK the only place where there was abuse of kava in Aboriginal communities). That's not an acceptable reason for the trade restriction, and I'm glad Vanuatu is pushing back.

Note that the two largest nations PNG and Fiji have refused to sign on so far, which might be why Vanuatu is now getting cold feet. I wish Fiji would join Vanuatu in asking for the kava restrictions to be lifted as one of the preconditions for Pacer Plus negotiations to proceed.

There's another angle to this as far as leverage is concerned: China.
China has been making a massive push into the Pacific over the past decade, ramping up aid and investment in the region. AU/NZ don't like this incursion into what they've always considered their backyard, are pushing back, and Pacer Plus is just one of the arrows in their quiver.

NOTE: These are just around-the-tanoa thoughts. I have no special knowledge in this area.
That makes sense. Especially the China angle.
 

kastom_lif

Kava Lover
The China angle could be a real factor. China funded the construction of the Melanesian Spearhead Group headquarters in Vila, perhaps coincidentally.

https://en.wikipedia.org/wiki/Melanesian_Spearhead_Group

I don't know what the Melanesian Spearhead Group think about PACER, but they are a regional organization that discusses trade and development. They also don't pull any punches when it comes to topics like independence for West Papua and Kanaky.
 
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