Fiji is set to reduce import duties as part of its commitment to the Interim Economic Partnership Agreement (IEPA) with the European Union (EU), which is projected to lead to an annual revenue loss of $737,000. This loss, however, will be mitigated by Fiji’s exports to the EU, which are valued at $132 million.
Deputy Prime Minister and Minister for Trade Manoa Kamikamica disclosed this information during a ministerial statement in Parliament on Monday. He explained that the adjustment in Fiji’s market access commitment from 80 percent to 75 percent, through technical amendments to the trade agreement, would eliminate tariffs on 4,916 individual items imported from the EU.
Currently, 32 percent of these tariff lines already benefit from zero fiscal duties due to the More Favourable Nations (MFN) clause, meaning Fiji only needs to liberalize the remaining 43 percent. Kamikamica estimated that reducing import duties on these remaining items would generate the aforementioned revenue loss, calculated based on six years of average import duties related to the tariff lines included in the IEPA.
He emphasized that the trade benefits Far outweigh the anticipated revenue loss from tariff eliminations on EU goods. Fiji exports products such as tuna, ginger, mineral water, garments, and kava, amounting to $132 million.
Looking ahead, the Deputy Prime Minister assured that the Government will closely monitor the impact of tariff reductions to ensure they positively affect the local economy and address any challenges that might occur swiftly.