There is more urgency now for the two Samoas to seal a free trade pact.
This follows the recent round of talks in American Samoa a few days before Christmas by the Joint Trade Task Force.
From that meeting, a draft trade and economic agreement was adopted with formal endorsement set for the next round of talks later this year.
“Our negotiations talks ended on a positive note, with both sides agreeing to come up with solutions to ease trade barriers,” says Chief Executive for Commerce Industry and Labour Peseta Margret Malua.
“The task force forging the document has agreed that the main areas to be covered in the deal are the trade in goods and services, investment and labour.
“We also have an economic co-operation chapter where we will continue to facilitate two Samoa trade fairs, also the private sectors of the two Samoas to work together in building their capacities and sharing information between the private sectors,” added Peseta, who led Samoa’s delegation to the talks which also included private sector representatives.
“It will also involve permits for businesses working between the two Samoas.”
Details of the draft document have not been made public yet and remain under wraps until both the Samoa and American Samoa Governments are ready to proceed.
But trade between the two countries will never reach its full potential unless there is a binding legal framework, insist Deputy Prime Minister and Minister of Trade Fonotoe Nuafesili Pierre Lauofo.
“The absence of a free trade agreement coupled with US federal laws had prevented a realistic free trade pact between us and American Samoa,” added Fonotoe.
He said that Samoa and American Samoa also share a lot of synergies and market conditions are similar.
“Rather than continuing to talk it’s time to put the discussions into actions.
“A free trade pact will open up the gateway to the US market for the two Samoas.
“There is astronomical potential for a joint venture with American Samoa to produce value added products for the US market.
“We are now sending agro products to the US in bulk but there are opportunities to make the finished product either here or in Apia to sell to the US,” noted the Deputy Prime Minister.
“This would take advantage of American Samoa’s duty free status with the United States.
“It’s not just to improve trade but to encourage inter Samoa business development.”
If all goes well, the 2 Samoas Free Trade Agreement is anticipated to be signed and sealed before the end of the year.