The Pacific Strategic Partnership Agreement (PSPC) is an international trade agreement that was signed in 2018 between 11 countries in the Pacific region. The agreement aims to promote economic growth, trade, and investment among the member countries by lowering trade barriers, increasing market access, and facilitating the flow of goods and services between the participating nations.
One of the key features of the PSPC is the establishment of trade agreement thresholds. These thresholds represent the maximum amount of goods and services that can be imported into a member country without incurring tariffs or other trade barriers.
The PSPC has set different thresholds for different types of products and services. For example, the threshold for agricultural products is set at $50,000 per year, while the threshold for manufactured goods is set at $1 million per year.
These thresholds are designed to benefit small and medium-sized enterprises (SMEs) by making it easier for them to export their products to other member countries without facing the same trade barriers as larger businesses. In addition, the thresholds help to protect sensitive domestic industries by limiting the amount of foreign goods that can be imported.
Under the PSPC, member countries are also required to establish a system for monitoring imports and exports to ensure that they are staying within the established thresholds. This helps to prevent unfair competition and protects domestic industries from being undercut by cheap imports.
Overall, the trade agreement thresholds established under the PSPC represent an important step towards increasing trade and investment among the member countries. By lowering trade barriers and facilitating market access, the agreement is expected to boost economic growth and create new opportunities for businesses in the region.