Fiji’s Deputy Prime Minister and Finance Minister, Professor Biman Prasad, addressed the newly imposed 32 percent export duty by the United States during a session at the NEXT Milan Forum in Italy. He reassured the public that, in the short term, Fiji does not expect immediate adverse effects from this tariff due to the limited scale of trade with the U.S., which represents only 5% of the nation’s GDP.
However, Prasad emphasized long-term concerns, particularly regarding the potential impacts on Fiji’s vital tourism sector, which accounts for approximately 40% of the country’s GDP. He noted that should the tariff conflict escalate into a broader global economic slowdown affecting disposable income in key tourism source markets, Fiji could face significant economic repercussions.
Despite the immediate impacts being minimal, Prasad indicated that the economic resilience demonstrated by stronger Australian and New Zealand economies currently provides a buffer for Fiji. He suggested that diversifying economic activities beyond tourism is a strategic priority for the government, insisting on the need for tailored approaches to international relations and trade to ensure the sustainability and resilience of small island nations like Fiji.
Prasad called for enhanced regional collaboration, stressing the importance of deeper integration and harmonized policies to address shared challenges and foster economic growth. His approach aligns with previous statements highlighting the need for Fiji to explore new markets and diversify trade relationships—a strategy seen as essential to navigating the complexities of international trade dynamics.
In summary, while the situation poses potential challenges, a strategically diversified economy may provide Fiji with the tools to adapt and thrive amid global uncertainties, fostering hope for sustainable growth in the future.
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