Most Pacific island countries have now signed the Pacific Island Countries Trade Agreement (PICTA) and the Pacific Islands Agreement on Closer Economic Relations (PACER) and are negotiating Economic Partnership Agreements (EPAs) with the European Union. These countries (their governments, companies, employees and the public) are not prepared for the economic adjustments that will be required under such trade agreements and there are likely to be defensive reactions to employment losses and significant losses of government revenues. PACER holds much greater prospects than EPAs for addressing problems of unemployment of unskilled labour and the broader development challenges of raising living standards in the Pacific island countries