The Coalition Government is working to secure Fiji’s market access to the European Union (EU) through the Interim Economic Partnership Agreement (IEPA). To achieve this, Fiji is required to commit to ‘reciprocity in trade’, meaning the country must allow certain EU products to be imported without duties.
Deputy Prime Minister and Minister for Trade Manoa Kamikamica emphasized that failing to reciprocate could jeopardize Fiji’s preferential or duty-free access to the EU market, posing a threat to the current export volume. He stressed the importance of implementing Fiji’s market access commitments under the IEPA.
Fiji must therefore open its markets to EU goods by removing tariffs and taxes on specific imports, facilitating easier entry for EU products. Mr. Kamikamica outlined that Fiji would take various actions to ensure the elimination of tariffs as pledged under the IEPA, including forming a dedicated team to oversee these changes and ensure their proper application.
Since signing the IEPA in 2009 and applying it provisionally in July 2014, Fiji has yet to fully implement its provisions, particularly the reduction of duties as per its market access commitments. Mr. Kamikamica pointed out that Fiji has benefited from the agreement, particularly in the sugar industry, where EU countries represent up to 90% of Fiji’s total sugar exports.
He noted that despite challenges such as competition and global sugar price fluctuations, the EU remains a reliable market for Fiji’s exports, significantly contributing to foreign exchange earnings and employment opportunities.
The IEPA has also created opportunities to export various goods including tuna, ginger, mineral water, and garments, with exports to the EU peaking at $132.4 million in 2022. Mr. Kamikamica affirmed that the Government would keep communication open with the EU to address any issues arising during the implementation of the IEPA commitments.