Australia and New Zealand will together contribute $170 million over the next five years to support Pacific Island members of the Pacific Agreement on Closer Economic Relations (PACER) Plus.

The contribution was announced at the 2025 PACER Plus Ministerial Meeting, held on Thursday November 27 in Honiara, a joint statement from the governments of Australia and New Zealand said.

Australia was represented by Assistant Minister for Pacific Island Affairs, Nita Green, while Minister of Commerce and Consumer Affairs Scott Simpson represented New Zealand.

Announcing the new contribution, Assistant Minister Green said Australia wanted to deepen regional economic integration in the Pacific.

““In a time of rapid change in the global trade environment, our region can be a source of reliability and prosperity,” said Assistant Minister Green.

“As the primary vehicle driving regional economic integration, PACER Plus delivers both.”

New Zealand’s Minister Simpson, in making the announcement, highlighted New Zealand’s commitment to supporting economic growth across the region.

“In signing the PACER Plus Implementing Arrangement, we are demonstrating our ongoing commitment to trade growth, prosperity, and Pacific regional economic integration through trade.”

PACER Plus is a regional trade and development agreement that aims to make it easier for Pacific countries to trade, attract investment and grow their economies. The agreement entered into force in 2020.

The new investment of $170m is an increase to the support provided during the first five years of the agreement, following calls from Pacific ministers to sustainably resource popular labour mobility programs such as Australia’s PALM Scheme and New Zealand’s Recognised Seasonal Employer (RSE) scheme.

The contribution will support the agreement’s Development and Economic Cooperation Work Program and the PACER Plus Implementation Unit. Under the Work Program, Pacific PACER Plus members can access support to strengthen their trade and investment environments, including in areas such as customs, e-commerce and labour mobility.

Australia and New Zealand both grant 100% tariff-free access to PACER Plus members, allowing Pacific countries to take advantage of their consumer markets.

The agreement has ten members: Australia, Cook Islands, Kiribati, New Zealand, Niue, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.