PACER was signed in August 2001 and came into force in October 2002. This is not a free trade agreement, but an umbrella agreement for trade cooperation and economic integration between the 14 FIFs and Australia and New Zealand for the development of a regional internal market. It also supports FIZ through the Regional Trade Facilitation Programme (RTFP), which aims to address customs, standards and compliance and quarantine issues. PACER provides for trade-wide trade agreements to be negotiated eight years after PICTA (2011) or earlier, when the IIF enters into a free trade agreement with a developed country or country with a gross domestic product that exceeds that of New Zealand. Trade between the countries of thought in Melanesia has been taking place for millennia and is the vital element of the culture and the people that maintain it. As natural trading partners, MSG countries have recognized for many years the importance of trade in increasing the prosperity of their economies. The launch of a trade agreement sought to formalize these trade relations and ensure full access for people in each economy. The original MSG Trade Agreement (MSG TA) was signed in 1993 and governed the three Melanesian states, Vanuatu, Papua New Guinea and the Solomon Islands. Fiji signed the agreement in 1998, after joining MSG the previous year.
FLNKS has permanent observer status in the agreement. The Melanesian Spearhead Group (MSG) was developed in 1986 between the three Melanesian Pacific States, Papua New Guinea, Vanuatu and the Solomon Islands.  The MSG trade agreement was signed in 1993 by Papua New Guinea, Solomon Islands and Vanuatu. At the 6th Meeting of Trade and Economic Officials on 16 April 1997 in Honiara, the Fijian delegation agreed to join. This initiative was supported at the 1997 MSG Leaders Summit. Fiji officially became a member of the MSG trade agreement on 14 April 1998. The 9.MSG meeting of trade and economic officials was held on 29 and 30 November 2000 in Papua New Guinea. At that meeting, the extension of the tariff positions of the MSG product plan from four to six digits was adopted, which facilitated MSG`s trade by removing the ambiguity of product identification at customs ports of entry.