The Coalition Government is working to secure Fiji’s access to the European Union (EU) market through the Interim Economic Partnership Agreement (IEPA). In exchange, Fiji is required to implement a principle known as ‘reciprocity in trade,’ which entails allowing certain EU products to enter Fiji 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 under the IEPA, potentially impacting the country’s export volume. During a ministerial statement on Monday, Mr. Kamikamica emphasized the importance of fulfilling market access commitments outlined in the IEPA.
He stated that Fiji must open its markets to EU goods according to the IEPA terms, which includes eliminating tariffs and taxes on selected imports, thus easing the entry of EU products into Fiji. To ensure the effective removal of these tariffs, Mr. Kamikamica mentioned the establishment of a dedicated team focused on overseeing the implementation of these changes.
Fiji signed the IEPA in 2009 and provisionally applied it in July 2014, but had yet to fully implement its commitments, including the reduction of duties. Since signing, Fiji has reaped benefits from the agreement, especially in the sugar sector, where EU countries accounted for up to 90 percent of Fiji’s total sugar exports.
Despite challenges such as competition and global sugar price fluctuations, the EU has remained a dependable market for Fijian exports, significantly contributing to the nation’s foreign exchange earnings and job creation. Mr. Kamikamica highlighted that the IEPA has also facilitated the export of other goods, including tuna, ginger, mineral water, and garments, with EU exports peaking at $132.4 million in 2022.
He reiterated the government’s commitment to maintaining communication with the EU to resolve any issues that may arise during the implementation of the IEPA commitments.