THE Melanesian Spearhead Group (MSG) is developing a framework to facilitate a smoother cross-border trade amongst its member countries.
Despite comprising Fiji, Vanuatu, Solomon Islands, Papua New Guinea and New Caledonia, the MSG nations currently operate under different business systems and this creates a challenging environment for businesses involved in cross-border transactions.
Addressing the media at the conclusion of the MSG ‘Tok Stori’ held in Honiara on Monday, MSG Director General Leonard Louma emphasized that one of the identified issues hindering trade is the varying investment costs within member countries.
Mr Louma pointed out that MSG currently lacks an overarching framework to assist businesses in navigating cross-border investments.
While the MSG Free Trade Agreement, encompassing the services sector and investment, is yet to come into force, Mr Louma explained that currently only the trading of goods is taking place.
“Business houses are engaged in ad-hoc trading, awaiting the formalization of the MSG FTA which will provide a legal framework for cross-border investments,” he added.
Mr Louma pointed out that another challenge faced by businesses is the difficulty in moving around member countries due to different visa and licensing requirements.
To address this, he said the MSG is planning a meeting of all Heads of Immigrations to develop a streamlined approach for business people to move freely within member countries.
Permanent Secretary of Solomon Islands Ministry of Foreign Affairs and Trade Collin Beck, in turn, emphasized the importance of addressing trade barriers.
Mr Beck said the application of the Automated System for Customs Data (ASYCUDA) and the need for a coordinated approach amongst relevant authorities to facilitate trade effectively.
The recent MSG “Tok Stori” held from February 18 to19 in Honiara focused on strengthening MSG cooperation in alignment with the theme for this year “Investing in MSG for a stronger Melanesia.”
This initiative aims to foster in-depth discussions amongst member countries to address trade barriers and promote broader cooperation within the Melanesian sub-region.
The meeting, proposed during the 2022 MSG Special Leaders’ Summit in Suva, Fiji, signaled a commitment to enhancing economic collaboration within the MSG.
By EDDIE OSIFELO
Honiara, Solomon Star
