The Coalition Government of Fiji is working to secure access to the European Union (EU) market through the Interim Economic Partnership Agreement (IEPA). However, this access requires Fiji to implement a policy known as ‘reciprocity in trade,’ meaning the country must allow certain EU products to be imported duty-free.
Deputy Prime Minister and Minister for Trade Manoa Kamikamica warned that failing to reciprocate could jeopardize Fiji’s preferential access to the EU market, potentially halting the duty-free status for Fiji’s exports. He emphasized the importance of fulfilling market access commitments under the IEPA in his statement.
Kamikamica highlighted that Fiji must open its markets to EU goods as stipulated in the agreement, which includes eliminating tariffs on specific imports to facilitate easier market entry for EU products.
To ensure the effective removal of tariffs promised under the IEPA, Fiji plans to establish a specialized team to oversee the implementation and correct application of these changes.
Fiji signed the IEPA in 2009, and while it began provisional application in July 2014, it has yet to fully implement its commitments regarding duty reductions. Since signing the agreement, Fiji has seen benefits, especially in the sugar sector, where EU countries account for up to 90 percent of Fiji’s total sugar exports.
Kamikamica noted that despite challenges such as competition and global sugar price fluctuations, the EU remains a stable and trustworthy market for Fijian exports, significantly contributing to the nation’s foreign exchange earnings and job creation.
The IEPA has also enabled Fiji to export various products, including tuna, ginger, mineral water, and garments, with EU exports hitting a peak of $132.4 million in 2022. The Government plans to maintain open lines of communication with the EU to address any issues that may arise during the implementation of IEPA commitments.