SUVA (Pacnews) — The Solomon Islands government has formally requested assistance from the Melanesian Spearhead Group to improve the country’s worsening economic situation and other international obligations.
A diplomatic note has been sent to Papua New Guinea, Fiji and Vanuatu, requesting for a waiver or temporary suspension of obligation under the MSG Trade Agreement.
The Solomon Islands economy has been deteriorated by the ethnic crisis in the last two to three years. Foreign reserves are now at it’s lowest and is decreasing at an average rate of SI$6 million ($960,000) per month.
In the diplomatic note, Solomon Islands has admitted that a closer analysis of its performances showed a huge trade imbalance in favor of MSG countries. Its imports from MSG countries were worth $4.48 million while its total exports were worth only $51,550.
A Pacnews source said that as part of the overall objectives to increase government revenue, the Solomon Islands has requested a waiver or temporary suspension for a three-month period.
MSG countries have not made a decision on the Solomon Islands’ urgent request.
