The Coalition Government of Fiji is working to secure market access to the European Union (EU) through the Interim Economic Partnership Agreement (IEPA). In exchange, Fiji is expected to offer similar concessions by allowing certain EU products to enter the country duty-free.
Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, warned that failing to reciprocate could jeopardize the preferential access for Fijian goods to the EU, potentially impacting the current export volumes. He emphasized the importance of fulfilling Fiji’s market access commitments under the IEPA, which requires the removal of tariffs and taxes on specific imports from the EU to facilitate their entry into Fiji’s market.
To ensure compliance with the tariff reductions agreed upon in the IEPA, Mr. Kamikamica indicated that the government would establish a dedicated team to oversee the implementation of these changes effectively.
Fiji signed the IEPA in 2009, and while it tentatively began applying it in July 2014, it has yet to fully implement the agreed provisions, including the necessary duty reductions. Mr. Kamikamica noted that since signing the agreement, Fiji has benefited significantly, particularly in the sugar sector, with EU countries accounting for up to 90 percent of Fiji’s total sugar exports.
Despite challenges posed by competition and global sugar price fluctuations, the EU has remained a stable market for Fijian exports, supporting foreign exchange earnings and providing jobs for many. The IEPA has also created opportunities for exporting other products like tuna, ginger, mineral water, and garments, with exports to the EU hitting $132.4 million in 2022.
The government will continue to engage with the EU to address any issues that may arise during the implementation phase of the commitments under the IEPA.