The Coalition Government of Fiji is working to secure the country’s market access to the European Union (EU) through the Interim Economic Partnership Agreement (IEPA). In exchange, Fiji is required to offer similar concessions, allowing certain EU products to be imported into the country without duties.
Deputy Prime Minister and Minister for Trade Manoa Kamikamica emphasized the importance of this reciprocity, warning that failing to comply could jeopardize Fiji’s preferential access to the EU market, which is vital for maintaining current export levels.
In his recent ministerial statement, Kamikamica noted that fulfilling the market access obligations under the IEPA is essential for Fiji’s trade. This would entail removing tariffs and taxes on specific EU imports to facilitate their entry into Fiji’s market.
The government plans to implement several measures to ensure the effective removal of tariffs as outlined in the IEPA. This includes forming a dedicated team to oversee the execution and application of these tariff adjustments.
Fiji signed the IEPA in 2009, and while it provisionally applied the agreement in July 2014, it has yet to fully implement its commitments regarding the reduction and elimination of duties. Kamikamica pointed out that since signing the agreement, Fiji has reaped benefits, especially in its sugar sector, where EU countries have accounted for as much as 90 percent of the nation’s total sugar exports.
Despite facing challenges such as competition and global sugar price fluctuations, the EU has remained a dependable market for Fiji’s exports, significantly contributing to foreign exchange earnings and job creation. Kamikamica also highlighted the opportunities opened up by the IEPA for exporting other goods, including tuna, ginger, mineral water, and garments, with exports to the EU peaking at $132.4 million in 2022.
The government is committed to maintaining communication with the EU to address any potential issues that may arise during the implementation of the IEPA commitments.