WORLD TRADE  
ORGANIZATION  WT/TPR/M/213 
25 June 2009 
 (09-3135) 
Trade Policy Review Body 
25 and 27 March 2009  
 
 
 
TRADE POLICY REVIEW 
 
FIJI 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Istvan Major (Hungary) 
 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF FIJI 4 
III. STATEMENT BY THE DISCUSSANT 9 IV. STATEMENTS BY MEMBERS 13 
V. REPLIES BY THE REPRESENTATIVE OF FIJI AND ADDITIONAL COMMENTS 31 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 38 
 
 
 
Note:   Advance written questions by WTO Member s and the replies provided by Fiji are reproduced 
in document WT/TPR/M/213/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/213 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The second Trade Policy Review of Fiji was held on 25 and 27 March 2009.  The 
Chairperson H.E. Mr. Istvan Major (Hungary) welcom ed the delegation of Fiji, headed by Mr. Aiyaz 
Sayed-Khaiyum, Attorney-General, and Minister for Justice, Electoral Reform, Public Enterprises and 
Anti-Corruption;  Minister for Industry, Trade, Tourism and Communications, and the discussant, 
H.E. Mr. Peter C. Black (Jamaica).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by Fiji was contained in document WT/TPR/G/213 and that of the WTO Secretariat in WT/TPR/S/213. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegation of Fiji:  China;  th e United States;  the Republic of 
Korea;  Japan;  Canada;  New Zealand;  Brazil;  and Australia.  All advance questions, as well as the 
responses received from the delegation of F iji are reproduced in WT/TPR/M/213/Add.1. 
4. The following delegations had submitted written questions after the two-week deadline:  the 
European Communities;  Hong Kong, China;  and Indonesia. 
5. The Chairperson said that he had considered  the Secretariat and Government Reports 
prepared for this meeting.  Both reports noted th at since its previous Trade Policy Review in 1997, 
Fiji's economy had been characterized by erratic growth , inflationary pressures, and deficits in both its 
current and capital accounts.  Much needed structur al reforms to improve the economy's performance 
appeared to have come to a virtual standstill.   
6. Nonetheless, during the period under review, some  progress had been made in areas such as, 
customs procedures, and foreign investment.  He imagined Members would welcome further details 
on, among other things:  Fiji's policies to cope with  the slowdown in economic growth and the decline 
in foreign direct investment inflows;  measures to reduce state involvement in the economy; Fiji's 
bilateral and regional commitments; and Fiji's technical  assistant needs.  He hoped that the discussion 
within the context of this Trade Policy Review w ould help Fiji's policymakers to prepare to meet 
some of the challenges ahead and, at the same  time, allow WTO Members to acquire a better 
understanding of the outlook for the second largest economy in the South Pacific in a number of 
trade-related areas. WT/TPR/M/213 
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  II. OPENING STATEMENT BY THE REPRESENTATIVE OF FIJI 
7. I am pleased to be here in Geneva to introdu ce and discuss with you Fiji’s trade policies and 
practices. On behalf of the Fiji Government, I woul d like to thank the Secretariat for their report 
(WT/TPR/S/213). It provides a comprehensive assessm ent of our trade policies and practices. Fiji’s 
Policy Statement is in document (WT/TPR/G/213) a nd therefore, I will not be going through it in 
detail. However, I would like to undersco re a few issues that are crucial to Fiji. 
8. Fiji’s first and only Trade Policy Review was c onducted about twelve years ago. Since 1997, 
there have been a lot of developments at the gl obal and domestic fronts whic h have had an influence 
on our trade policies and practices. As such, this Tr ade Policy Review is a most timely exercise, and 
my delegation looks forward to sharing Fiji’s e xperiences and to hearing your own experiences that 
may be relevant to Fiji’s attempt to use trade effectively as a tool for economic growth, poverty 
alleviation and sustainable development. 
9. In preparing for this Trade Policy Review, we  of course had to refer to our 1997 review 
submissions and assessments. It is apparent that some of the issues that affected us twelve years ago continue to pose serious challenges for our econom y. Fiji is a small, vulnerable economy with a 
narrow resource base and is import reliant. Our few export oriented sectors, such as sugar, garments 
and fish, are reliant on rapidly eroding preferential mark et access. In light of the rapid changes in the 
global environment, it is a major challenge for us  to diversify our economy and develop sectors in 
which we have comparative and competitive advantages.  
10. In the late eighties, as part of Fiji’s export or ientation policy, Fiji developed her textile and 
clothing industry through incentives and reliance on trade preferences. However, with the expiry of 
the Agreement on Textiles & Clothing (Multi Fibre Agreement) at the end of 2004, companies that 
were exporting garments to the USA had to shut  down their operations. This led to significant 
unemployment, particularly amongst women in the sect or. In real terms, the industry contracted from 
a peak of 23,000 to 5,600 workers and our GDP contracted from a level of 5.5% in 2004 to a recessionary figure of 0.6% in 2005.  
11. Similarly, the sugar industry which has been the mainstay of our economy for close to a 
century will be affected by a 36% reduction in prefer ential price. With approximately 25% of Fiji’s 
workforce either directly or indirectly depe ndent on the sugar industry, the erosion of these 
preferences will have a deleterious socio-economic impact. The fisheries sector, which is a growing 
export sector with enormous potential,  may also face difficulties as a result of liberalisation of the Non-Agricultural Market Access (NAM A) products under the Doha Round. 
12. These examples, clearly demonstrate how external  policies, policies beyond our control, have 
a devastating impact on a small economy, which has a limited resource base and is highly vulnerable 
to external trade shocks. 
13. Fiji is currently facing a widening trade deficit which is caused by a low demand for our 
traditional exports, difficulties in realising new exports and increased imports. High oil and food 
prices in 2008 severely affected our foreign reserve s. This situation has been exacerbated by the 
current global economic crisis which is expected to severely affect, inter alia , our exports, inward 
remittances, trade finance and potentially reduce our tourist arrivals.    
14. Furthermore, our main exports where we have competitive advantage continue to be subjected 
to non-tariff barriers, including stringent sanitary and phytosanitary (SPS) requirements which are 
predominantly imposed by developed countries. Fiji is concerned about the rapid proliferation of 
governmental as well as private SPS measures which ar e sometimes used as disguised trade barriers.   WT/TPR/M/213 
 Page 5 
 
 
  15. Different SPS measures that are imposed by different trading partners cause additional 
difficulties for our government and as well as other governments of Small and Vulnerable Economies 
which inter alia  have very limited technical  and financial resources.  
16. Fiji’s recent experience of problems with its export of fish products to the EU due to SPS 
certification issues and its consequence on what is a promising sector, is a case in point.  
17. However, since the de-listing, we have  received assistance from the EU financed 
“Strengthening Fisheries Programme (SFP)” to enab le our Competent Authority to comply with the 
EC SPS requirements. Fiji would like to express its a ppreciation to the EC for providing effective and 
targeted technical assistance without burdensome administrative procedure. We look forward to 
receiving further effective and timely technical assist ance to fully address our SPS issues with the EC.  
18. The ban on importation of kava for commercial sale in Australia is of concern to Fiji, given 
that it is a measure unnecessarily trade restrictive. The ban also does not appear to address its stated 
objectives. There is a need for Aust ralia to work constructively, eff ectively and expeditiously with Fiji 
to solve this issue in the appropriate bilateral forum. 
19. Fiji faces huge challenges in its efforts to diversify its economy away from preference-
dependent exports, develop e xport competitiveness and achieve sustainable development. 
Concurrently, Fiji is committed to raising the stan dard of living of its people, including through 
focusing on the achievement of those Millenium Development Goals (MDGs) still outstanding for 
Fiji. The MDGs relating to in particular to health and education require focus and budgetary attention. 
In order to ensure that our progress towards achieving these and other domestically prioritised goals continue, Fiji has been compelled to sustain expe nditure beyond the capacity of her tax revenues.  
20. Fiji is fully committed to the overall objectives of  the WTO. However, we would like to seek 
the support of WTO Members to ensure that our de velopment goals are not unnecessarily constrained 
by WTO rules. We need some flexibility, to be able to introduce measures that are commensurate 
with our capacity, level of development and th e overwhelming challenges that we face. These 
challenges that Fiji is facing demonstrates that we would need more time as well as effective technical 
and financial assistance to be able to fully comply with the WTO rules.  
21. Poverty alleviation for the most needy in F iji has been the central pillar of the current 
government’s economic and developmen t policies, in particular in this global recessionary climate.  
22. To this end, government has raised the mini mum threshold of taxable income from F$9,000 
to F$15,000, exempting 40% of taxpayers from paying income tax, costing the national coffers approximately F$22m.  In addition, the Governme nt has eliminated duti es on key basic food items 
such as rice, tinned fish and edible oil.  
23. The Secretariat’s report has noted that tariff rates have drifted upwards in the last few years, 
and that in some cases, applied rates continue to  exceed bound rates. Mr Chairman, bound rates have 
been exceeded only in the case of some tobacco and alcohol tariff lines. With regards to the slight 
upward drift of tariffs, it should be noted that this  was a necessary revenue generating measure in the 
context outlined earlier of the government’s focus on poverty alleviation measures. It is also important 
to note that this upward drift is still within our bi nding commitments, and Fiji is simply utlising the 
policy space available to it for addressing development concerns. 
24. Fiji being a small island state, is highly vulnerable to natural disasters. In this context, Fiji is 
currently trying to recover from unprecedented floods  which occurred in January this year. These 
floods caused major setbacks to our two main ec onomic sectors – agriculture  and tourism. WT/TPR/M/213 
Page 6  
 
  Infrastructure was also severely damaged. The assessment to date esti mates damages at FJ$112 
million.  
25. Government will need to finance the rehabilita tion costs associated with the flood from the 
current budget. This means that some of our spe nding programmes in key areas of health, education 
and social welfare may need to be deferred or curtailed. This will take away scarce resources from 
economic development programmes such as devel oping export competitiveness. Assistance from our 
partners in the international community, both d onor countries and institutions, would be welcomed. 
This will not only assist with government’s relie f and rehabilitation programmes, but will also 
facilitate a continuation of govern ment’s development strategies. 
26. The challenges we are facing are not unique to Fiji. We understand that other small 
economies which have limited resources and are subject  to high vulnerabilities, including external 
shocks, face similar challenges.  
27. However, despite all these challenges, Fiji is fu lly committed to the rules based system of the 
WTO. The system provides security, predictability a nd protection against further marginalisation from 
the global trading system.      
28. Fiji is one of the small vulnerable countries in ur gent need of Aid for Trade resources in order 
to derive maximum benefits from the multilateral tr ading system. Our experience has shown that for 
Aid for Trade to be effective, it must be based on a partnership approach and aligned to the trade 
priorities that have been set by the recipient country.  
29. For Fiji, it is important to engage in dialogue w ith development and trading partners to ensure 
that projects under the umbrella of Aid for Trade refl ect our needs and priorities  as articulated in the 
Sustainable Economic and Empowerment Developm ent Strategy rather than those of donors - 
however well-intentioned. In addition, re-labelli ng of existing aid programmes under the ambit of AfT 
must be avoided. Aid for Trade should remain true  to its objective of providing new, additional and 
effective funding for trade.  
30. Aid for Trade will also assist in raising much needed trade negotiating capacity and 
facilitating regional economic integr ation initiatives. One such importa nt initiative in the Pacific 
region is the negotiations of our future economic relations with our devel oped neighbours Australia 
and New Zealand under the PACER Plus framework . These will be the most important negotiations 
for Fiji and the other  vulnerable island economies in our region. Our capacity to negotiate will affect 
the pace and the final outcomes of the negotiati ons. We look forward to notifying the WTO on the 
successful conclusion of these negotiations at the appropriate time. 
31. Having spoken about Fiji’s need for assistance and ca pacity building to ensure that trade is an 
effective development tool; we recognise that we ourselves hold the key to our own future. The onus 
is on us to do all that we can in the context of increasingly complex exogenous challenges, and the 
rapidly changing global trading environment.   
32. In this regard, Fiji has introduced some measur es to improve its trading environment and also 
to promote its trade and development objectives. I w ould like to take a few moments to highlight at 
least four positive developments. 
33. One of the key achievements during the peri od under review is the deregulation of the 
telecommunications sector carried out by the current government. The monopoly in this sector 
increased the cost of doing business in Fiji and discour aged potential investors from investing in Fiji. 
The monopoly was due to end in 2014. In recognition of the limitations caused by the monopoly,  the  WT/TPR/M/213 
 Page 7 
 
 
  current government had the political will to liberali se this sector, and successfully negotiated with the 
assistance of World Bank mediators, with the three telecom operators in January 2008.  
34. Since the liberalisation, a second mobile tele phone licence has been issued, and the exclusive 
rights to the international gateway will end in June 2009. Indeed, this paves the way for more Internet 
Service Providers (ISPs) to enter the market. A Telecommunications Authority has also been 
established as an independent regulator of the sector. With these developments, not only will 
consumers, both business and private, benefit from a wider choice of telecommunication options at 
competitive prices, but Fiji will also be better placed  to attract ICT investment. Government has just 
concluded an agreement with a foreign multinati onal which shall establish a call centre in Fiji by 
September of this year. These operations shall provide  employment to 2500 people in a period of two 
and half years. The benefits, Mr. Chairman, are immediate and apparent, and government is proud of 
this achievement.  
35. The second development is the establishment of the Commerce Commission, as an 
independent institution under the Commerce Ac t of 1998. The objectives and purpose of the 
Commerce Commission, inter alia , is to  promote effective competition and informed markets, and to 
curb anti-competitive behaviour. 
36. The third development is the establishment of  institutions that foster accountability and 
transparency, including in the area of government pr ocurement. In this respect, Fiji has established a 
Financial Intelligence Unit (FIU) to formulate,  implement and enfor ce anti-money laundering 
measures. This government ratified in 2008 the United Nations Convention against Corruption 
(UNCAC). Fiji has also vol unteered to participate in the Pilot Review Programme under which it shall 
be scrutinised by other states regarding its im plementation of UNCAC. This government has also 
established the Fiji Independent Commission against Corruption (FICAC), FICAC will inter alia  
implement the new Prevention of Bribery promulgation which came into force in 2007. The FIU, FICAC and these new laws and international obligat ions, which set new standards of accountability, 
transparency and non-corrupt practices, will provide greater security and confidence to investors in 
Fiji. 
37. The fourth initiative is the commitment to an d preparation for the  accession to the Revised 
Kyoto Convention (RKC) and the adoption of the HS 2007 administered by the World Customs Organisation’s (WCO). Accession to the RKC shall de monstrate that Fiji is committed to adhering to 
international customs standards, especially, in areas of risk management, automation, closer working 
relationship with stakeholders, integrity and trade security and facilitation. We recognise that customs 
administration plays a vital role in the growth of international trade. The efficiency and the 
effectiveness of our customs procedures can signi ficantly influence Fiji’s economic competitiveness. 
38. I have outlined four areas of positive initiativ es in the broader areas affecting trade and 
commerce. Other areas of autonomous liberalisati on, that we continue to undertake, include:  
i) relaxing of investment restrictions earlier imposed  on foreigners;  ii) relaxing of restrictions on the 
issuance of television licenses;  iii) removing restri ctions on foreigners to obtain coastal trading 
license in the maritime sector;  and iv) opening up of super-yacht charter services to foreigners. 
39. Such liberalisation is well beyond any commitments  made by Fiji in the WTO.  We hope that 
our trading partners take advantage of such autonom ous liberalisation. It also demonstrates our overall 
commitment to a free and open economy whilst recogni sing and taking into consideration of our own 
specificities.  
40. 
There are a few areas in the Secretariat’s report th at need to be corrected. In this regard, Fiji 
will work with the Secretariat and the concerned members to ensure that  these inaccuracies are 
rectified prior to publication. We look forwar d to discussing Fiji’s trade policies and practices WT/TPR/M/213 
Page 8  
 
  including the challenges that are inhibiting us from fully utilising the opportunities that are offered by 
the WTO and donors.  
41. Fiji’s commitment to the WTO remains strong, d espite our non-resident status in Geneva. Our 
Permanent Representation based in Brussels relies heavily on the coordination of the Small and 
Vulnerable Economies Group and the African, Caribbean and Pacific Gr oup. We are also assisted by 
the Geneva-based Office of the Pacific Islands Forum S ecretariat to ensure that we are kept abreast of 
developments in Geneva. I would lik e to take this opportunity to thank these groups for ensuring that 
despite our non-resident status, Fiji’s concerns ar e made known in the WTO. To further enhance our 
participation in the WTO, Mr. Chairman, Fiji would like to be represented in Geneva in its own right. 
Any assistance in the initial set-up co sts of an office in Geneva would be appreciated from donors.  
42. Fiji remains fully committed to the Doha De velopment Agenda (DDA). Fiji has accordingly 
supported and co-sponsored releva nt proposals submitted by the SV E and ACP groups and other like-
minded Members. In this context, Fiji calls fo r a speedy conclusion of the DDA Round, taking into 
account the specific developmental needs of SV Es, especially on NAMA flexibilities, preference 
erosion, fisheries subsidies, Aid-for-Trade and trade facilitation.   
43. We invite the Members of the WTO to consid er Fiji’s Trade policies and practices in the 
context I have outlined above. We shall continue  to work with the WTO Membership with the 
ultimate objective of using the rules-based system  of the WTO to promote economic growth, poverty 
alleviation, sustainable development and raise the living standards of our people. 
  WT/TPR/M/213 
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  III. STATEMENT BY THE DISCUSSANT (H.E. Mr. Peter C. Black (Jamaica)) 
44. I was happy to have been asked to be the di scussant at this second Trade Policy Review of 
Fiji.  This is because there are a remarkable numbe r of similarities between Fiji and my own country, 
Jamaica.  Both are middle income island developi ng countries, with small economies based on almost 
the same range of products and ser vices, and subject to the same vulnerabilities.  We have a similar 
approach to regional integration, and to regional tr ade agreements.  We face similar challenges in the 
WTO, and have found common cause in the Doha R ound, negotiating together in such groups as the 
ACP and the SVEs.  These similarities have made it much easier for me to understand the challenges 
facing Fiji at this time, and the policies which its  Government has adopted  to cope with them. 
Macro-economic Environment 
45. In recent years Fiji has been confronted with enormous economic, political and other 
challenges.  The Secretariat report includes among these, rising external imbalances and 
accompanying foreign reserve pressu res, a narrow export base with major industries facing increasing 
competition abroad, together with preference eros ion in important markets, increasing costs of 
imports, high debt levels, low foreign and domest ic investment, a weakening business environment, 
and the uncertainties and erosion of confidence that resulted from the 2006 deviation from 
parliamentary democracy.  In addition, there are th e damaging effects of acts of nature, such as the 
floods earlier this year.  These are further compounde d by the current global financial and economic 
crises, the full extent and consequences of which are still unknown. 
46. In such a context, it can hardly be surpri sing that Fiji’s small and vulnerable economy has 
experienced contractions in its traditional expor t industries without any significant compensating 
expansion in new industries, with a consequentia l adverse impact on economic growth, employment, 
and poverty reduction. 
47. Overall, the economy has grown somewhat erratica lly at a weak average of 1% annually since 
2003.  Similarly, GDP per capita has been equally  sluggish averaging only 1% growth per annum 
since 1995, and is now estimated at US$3,300.   
48. Lamentably, Fiji’s global ranking as a developi ng country on the UN Human Development 
Index has fallen from 81st in 2003 to 92nd in 2008.  Fiji was ranked 50th among developing countries in 
2005 on the UN Human Poverty Index, and poverty among the population remains a major problem.  
What programmes has Fiji put in place to deal with the most vulnerable and needy?  
49. The sharp increase in the inflation rate, which peaked at 9.8% in September 2008, the highest 
in two decades, is also a cause fo r concern.  The main reasons for this increase were the higher prices 
for imported food and oil, and despite the recent declin e in oil prices, the rate of inflation has moved 
only slowly downwards.   As Fiji is a net food and petroleum importing country, what measures has 
the Government taken, apart from price regulati on, to alleviate the impact of these increases?  
50. Other macro-economic indicators reflect the problems besetting the Fijian economy.  
Continuing the trend of the past 5 years the curren t account deficit increased to an estimated 21% in 
2008.  Underlying this is a growing trade deficit which reached an estimated 30% in 2008.  The 
relatively small surplus in the capital account of 6. 3% was insufficient to off-set the current account 
deficit.  Fiji’s report nevertheless stated that the overall balance of payments position improved from a 
surplus of $57.5 million in 2006 to  $93.1 million in 2007.  This was attributed mainly to “large 
unaccounted inflows”.  The Secretariat report also re fers to significant “net errors and omissions” in 
the balance of payments accounts.  Could Fiji give some indication as to the source and nature of 
these unaccounted inflows?  WT/TPR/M/213 
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  51. On a more positive note, foreign exchange reser ves remained at adequate levels, and at 
US$860 million at the end of 2008 were sufficient to c over 3.2 months of imports .  External debt, at 
US$275.4 million (equivalent to 6.9% of GDP) is re latively small and manageable with a low debt 
service ratio.  The budget deficit, following a decline in  recent years, is forecast to rise to 3% in 2009, 
primarily to support expenditure on infrastructur e.  Overall, although the Government total 
indebtedness has shown a steady decline, it nevertheless remains relatively high. 
Trade and Investment Regime 
52. Although Fiji’s economy is the second largest in the South Pacific, it has a narrow base and 
depends to a considerable extent on trade in goods  and services.  Fiji’s major merchandise exports 
were negatively affected by changes in the glob al trading system, and the overall value of these 
exports increased only marginally between 2003 and 200 7.  At the same time, the vitally important 
services sector, which constitutes by far the largest pa rt of the Fijian economy, registered a significant 
decline. 
53. The figures in both reports show a major expans ion in Fiji’s trade, both exports and imports, 
with Singapore over the period 2003 to 2007.  What f actors have contributed to the growth in this 
trade? 
54. Fiji is pursuing a strategy designed to stimulat e exports as the engine of economic growth and 
poverty alleviation, and has initiate d a number of economic and struct ural reforms to diversify and 
make its economy more efficient, to develop expor t competitiveness, and to become more integrated 
into the global economy.  These reforms are being carried out in the context of the Fiji 20 year 
Development Plan, the National Export Strategy, and the Sustainable Economic and Empowerment 
Development Strategy.   Are there any indications so fa r that these policies are producing the 
intended results?  
55. As part of its strategy Fiji has expanded its network of regional and bilateral trade 
agreements, notably the South Pacific Regi onal Trade and Economic Cooperation Agreement 
(SPARTECA), the Melanesian Spearhead Group Tr ade Agreement (MSG), and the Pacific Island 
Countries Trade Agreement (PICTA).  According to the Fiji Government report, “Fiji fully supports 
regional integration as a first step toward inte gration into the increasi ngly liberalized world 
economy”.  This is a policy response that has been adopted by many other developing countries. 
56. Fiji has also initialled an interim Economic Part nership Agreement (EPA) with the European 
Communities under which the EC will provide duty and quota free access for all products (with a 
longer transitional period for sugar and rice), and F iji will liberalise 84% of its imports from the EC 
over a period ending in 2023. 
57. Given its dependence on tariffs for tax revenue, how does Fiji propose to meet the revenue 
short-fall that will result from duty free entry of products from the EC? 
58. In order to fully benefit from the opportunities provided by the EPA has Fiji developed a 
national implementation strategy, including the designa tion or creation of an authority responsible for 
the implementation of the EPA? 
59. Fiji’s participation in the WTO is difficult as it does not have a resident Mission in Geneva.  
Nevertheless, both through its Mission in Br ussels and through the Pacific Islands Forum 
Representative Office to the WTO, Fiji has defended its  interests in the WTO and has participated in 
the Doha negotiations.  Fiji is a member of grou ps such as the African Caribbean and Pacific (ACP) 
States, and the Small and Vulnerable Economies (SVE s) and supports the position that any negotiated 
agreements should include the development dime nsion, and should assist developing countries,  WT/TPR/M/213 
 Page 11 
 
 
  including through the application of special and diffe rential treatment, to integrate into the global 
economy. 
60. The Secretariat report notes that Fiji has a substantial number of outstanding WTO 
notifications, but the Fiji report indicates that Fiji is making every effort to implement its WTO commitments, and that all the outstanding notif ications will be submitted during this year.  Fiji should 
be commended for this effort, and encourage d, and assisted where necessary, to fulfil this 
commitment . 
61. The customs tariff is Fiji’s main trade policy instrument.  Although the tariff structure has 
been simplified since Fiji’s last TPR, the average a pplied MFN rate has increas ed from 7.9% in 2003 
to 10.4% in 2008.  This rate is expected to increase to 11.3% this year, due to tariff increases proposed 
in the 2009 Budget. 
62. Fiji has bound almost half of its tariff lines.   Concerns have been expressed that the large gap 
(40.2%) between the average bound and applied MFN tariff rates imparts some tariff unpredictability 
by providing scope for the authorities to raise applie d rates within the bindings.  Fiji’s position, in 
common with that of many other developing countries, is that it needs this policy flexibility to adjust 
its applied tariffs in order to promote economic grow th and for fiscal purposes.  Almost all tariff lines 
(95.5%) have ad valorem  rates, thereby contributing to the ta riff transparency.  Import prohibitions 
apply together with licensing requirements for hea lth security and moral reasons.  No anti-dumping or 
countervailing measures were taken during the period under review.  Fiji has no safeguards 
legislation. 
63. Fiji has improved its customs operations, and uses tr ansactions value.  According to the Fijian 
authorities, about 95% of imports are cleared with  three days, the majority on arrival.  Fiji is 
considering joining the Kyoto Convention. 
64. Fiji has liberalised and rationalised its foreign investment regime since its last TPR, but the 
Secretariat report has identified some remaining obst acles and restrictions.  Fiji’s national investment 
policy recognises the importance of investment in raising productivity, incomes, and employment, and 
in diversifying the economy; and provides a wide range of measures and incentives to facilitate and 
encourage investment.  Fiji’s report indicated that Fiji is negotiating its first Investment Promotion 
and Protection Agreements w ith Britain and Malaysia.  Many developing countries which seek foreign 
investment consider these Agreements to be an important  legal part of the policies that they adopt to 
attract investment.  Is there any reason why Fiji is only now beginning to ne gotiate such Agreements?  
Sectoral Policies 
65. Fiji’s economy is based primarily on agriculture, manufacturing, and services, and there have 
been set backs to the principal ac tivities within each of these sectors. 
66. Sugar is the main branch of the agricultura l sector, and the loss of preferential pricing 
arrangements in the EU, the principal market for Fijian sugar, has resulted in a steep decline in 
production and export earnings.  The Government h as initiated a restructuring programme with the 
aim of transforming the sugar industry into a co mmercially viable, efficient and more diversified 
industry.  One area of diversification me ntioned in both reports is ethanol production.  It would be 
interesting to know what progress has been made with these reforms; whether ethanol production has 
begun, and whether it is envisaged to use ethanol as a domestic alternative to imported fuel.  
67. Another important sector is fisheries, but this  sector, too, has been adversely affected by 
preference erosion, competition, and the loss of the EU  market for Sanitary and Phytosanitary reasons.  WT/TPR/M/213 
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  These are being addressed in order to resume export s to the EU.  Fiji anticipates growth in the 
fisheries sector over the next two years. 
68. The Fijian Government provides considerable s upport to agriculture as it sees this sector as 
fundamental to reviving the economy, and produci ng for export.  As a Net Food Importing country, 
the development of the agricultural sector to  ensure food security has assumed even greater 
importance, especially against the background of the current food crisis. 
69. In the manufacturing sector, the principal indus try, textiles, was adversely affected by 
preference erosion, but the production and export of  mineral water increased rapidly.  Fiji has a range 
of incentives to promote manufacturing, and its polic y goals are to diversify and expand the sector by 
developing competitive, high value-added industries. 
70. Tourism is by far the biggest component of the services sector, and is the largest contributor 
to economic growth, investment, and foreign exchange earnings.  Because of the political developments in 2006 tourism receipts (and remi ttances, the second largest source of foreign 
exchange) fell in 2007, widening the current account  deficit.  The Fiji report indicates that the 
situation was expected to improve in 2008 and 2009, with significant growth in visitor arrivals and 
tourism earnings anticipated.  However, these projections  may need to be revised in view of the global 
financial and economic crisis wh ich is already having a negative impact on tourism worldwide.  How 
did this sector perform in 2008?  
Aid for Trade 
71. Finally, Mr. Chairman, I would like to make a comment on Aid for Trade.  Throughout Fiji’s 
report, and also in the Secretariat’s report, there are numerous references to Fiji’s lack of capacity and 
other constraints in various trade related areas, a nd its need for technical assistance to overcome these 
deficiencies.  Indeed, the reports each contain an entire section on Aid for Trade in which Fiji’s needs 
and requirements are clearly set out.  I would encourage all the donor countries, including in 
particular Fiji’s major trading partners, to give seri ous consideration to how they can help to meet 
Fiji’s needs and thus facilitate its integration into the multilateral trading system.  
Conclusion 72. The period under review has undoubtedly been a ve ry difficult one for Fiji, and the pace of its 
recovery will depend not only on international developments, in par ticular the financial and economic 
crises and the worsening global recession, but also on Fiji’s determination and ability to continue its 
macro-economic and structural reforms, including in the critical areas of trade and investment.  I wish 
Fiji every success in this vitally important endeavour.  WT/TPR/M/213 
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  IV. STATEMENTS BY MEMBERS 
CHINA 
73. China and Fiji are important trading partners . The two countries signed intergovernmental 
trade agreement in 1997. Fiji is China’s fourth larg est trading partner in Pacific Islands, while China 
is Fiji’s seventh largest trading partner around the world. Through common efforts, economic and 
trade cooperation has expanded from trade simply to  more fields including investment, tourism, 
telecommunication, infrastructure construction as well as farm, forestry and fishery. According to Chinese statistics, bilateral trade in 2008 amounted  to over 90 million US dollars, representing an 
increase of 36% over 2007. As of the end of 2008, total real investment of Fiji in China was 5.43 million US dollars covering 28 projects. During the same period, Chinese enterprises invested 
22 million US dollars in Fiji. The contract value on labor service, design and consulting service stood 
at 345 million US dollars, while the total turnover amounted to 234 million US dollars. China, based 
on its own capability as a developing country, has also  provided aid and personnel training to Fiji. 
74. China and Fiji also enjoy friendly relationship in other areas of bilatera l exchanges. In April 
2006, Chinese Premier Wen Jiabao paid an official vi sit to Fiji and attended the Opening Ceremony of 
the First Ministerial Conference of China-P acific Island Countries Economic Development and 
Cooperation Forum. During this visit, the two c ountries announced to establish and develop “China-
Fiji important cooperative partners hip”. Various kinds of cultural exchanges are frequent between 
China and Fiji. In October 2004, Fiji became an  outbound tourism destination for Chinese citizens. 
Since 1984, China has also provided scholarsh ips for Fijian students to study in China. 
75. As a small and vulnerable economy, Fiji is susceptible to external and unforeseeable 
turbulences, as we have learned from both reports and the opening remarks of Minister Sayed-
Khaiyum. The unprecedented scale of the current global economic and fina ncial crisis and the 
devastating flood in January only compound the challenges faced by Fiji. Under the current circumstances, it is important for countries like F iji to have sustained access to foreign markets, 
investment and tailored aid for trade. This is a fo rmidable task not only for the Fijian government, but 
also for the international community as a whole. In this regard, we take note that the Secretariat 
Report has pointed out that Fiji’s economic recovery  is likely to be slow, and will also depend on 
international developments, notably the globa l recession following the recent financial crisis. 
However, WTO Members can help Fiji by further lib eralizing their markets without discrimination, 
including alleviating unduly restrictive non-tari ff barriers, such as sanitary and phytosanitary 
measures, which impede Fijian exports. We share th is analysis and encourage Members to follow the 
advice. 
UNITED STATES 
76. We note the economic and political challenges f acing Fiji, given the country’s disappointing 
economic performance in recent years, the global economic slowdown, and political instability following the replacement of a democratically elected government with the current military 
government in 2006.  Given this convergence of issu es, we were pleased to see, in the government’s 
report, the statement that the interim government  remains committed to economic reform, including 
with respect to trade and investment, as well as to  a return to parliamentary democracy, which we 
hope will occur this year. 
77. During 2008, our countries had $217 million in tota l bilateral goods trade, with U.S. exports 
to Fiji roughly $55 million and U.S. imports fro m Fiji exceeding $162 million.  As noted by 
Ambassador Black, one product in particular – bot tled mineral water – saw an increase in U.S. 
imports from Fiji from $700,000 in 1997 to become the top U.S. import from Fiji, at more than $60 million in 2008.  Other major U.S. imports incl ude molasses, sugar, and some vegetables.  Many WT/TPR/M/213 
Page 14  
 
  of these products receive preferential access under the U.S. Generalized System of Preferences (or 
GSP) program, of which Fiji has been a benefici ary since the outset of the program in 1976.  
78. We welcomed the opportunity to submit writte n questions to the delegation of Fiji on a 
number of issues including tariff policy, the protectio n and enforcement of intellectual property rights, 
the status of its import licensing notifications, and Fiji’s use of import substitution and export 
promotion policies.  We thank the delegation of Fiji for its attention to our qu estions and look forward 
to reviewing the written responses.  
79. One theme of our questions involved market access.   We were surprised to learn that Fiji has 
been increasing its applied tariffs in recent years, from an average applied tariff of 7.9 percent in 2003 
to 10.4 percent in 2008 and a projected 11.3 percent this year.  Factoring in the new import excise 
taxes, it appears that border protection has incr eased by an even larger  amount, to an average 
11.4 percent in 2008 and a projected 12.4 percent this year.  We would like to learn more about Fiji’s 
reasons for this increased protection.  As the Secretariat Report points out, these increases are at odds with the interim government’s stated objective of re ducing tariff protection.  In addition, we’d like 
more information about the coverage  of the new import excise taxes, which appear to be imposed only 
on imports and not on domestically produced goods. 
80. Another concern we would like to raise is in the area of customs administration, where the 
Secretariat Report suggests that valuation disput es between traders and government officials are 
common.  We have heard from Fiji importers that  there are inconsistencies in the way goods are 
classified by customs officials.  Specifically, we  have heard that even though the same products may 
be imported on a regular basis, they may be classified differently.  It would be useful to know whether 
Fiji has created any special procedures to resolve clas sification or valuation-related disputes, in order 
to provide greater transparency  and certainty to traders. 
81. We would also like to flag a concern regardi ng Fiji's quarantine requirements.  As currently 
written, Fiji's quarantine requirements expressly proh ibit the importation of meat from chickens that 
have been vaccinated against Newcastle disease.  While the United States is free from Newcastle 
disease, all of our chickens are vaccinated.  Fiji’s re quirements seem to us to be more stringent than 
necessary.  These requirements effectively shut our pr oducts out of Fiji's market to the detriment of 
Fiji's consumers. 
82. Finally, we would like to highlight our grow ing concern about intellectual property rights 
protection in Fiji.  The Secretariat Report notes that  copyright enforcement is weak and that illegal 
copies of films, sound recordings, and computer pr ograms are widely available.  Our understanding is 
that the piracy situation in Fiji is indeed seri ous, with both domestic a nd foreign rights holders 
growing much more concerned about the scope of optical disk piracy in Fiji.  A recent study by the Fiji Performing Right Association claims that as ma ny as 20 percent of merchants in Fiji may engage 
in some form of piracy, either as dedicated outlets  for pirated products or because they operate as 
general merchants offering pirated products such as CDs or DVDs among their other merchandise.   
Given the apparently serious nature of this problem, it is surprising to learn that there have been few, 
if any, convictions for intellectual property crimes since the Copyright Law was passed in 1999.   
Clearly, serious action needs to be taken to improve  enforcement, and we would very much like to 
hear what steps are being taken to address it.  We urge Fiji to take advantage of technical assistance 
opportunities available from international orga nizations, including WIPO, and from national 
governments.   We also urge you to continue to  take advantage of capacity building and technical 
assistance opportunities provided by the U.S. Patent and Trademark Office in the area of intellectual 
property protection and enforcement.  
  WT/TPR/M/213 
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  REPUBLIC OF KOREA 
83. Korea is pleased to participate in this second trade policy review for Fiji, a small island nation 
that recognizes the importance of an open global trad ing system for achieving economic development.  
At a time when temptations abound for introducing protectionist measures as the global financial and 
economic crisis deepens, Fiji's conviction in the WTO and open trade regime serves us to remind 
ourselves that continued trade in an open and transp arent environment is the only sustainable means 
for economic growth.  When it comes to the multila teral trading system, no country is an island. 
84. Since its last trade policy review, Fiji has undergon e many hardships.  On top of the financial 
and economic crisis sweeping across the world, Fiji  suffered from a natural disaster early this year, 
from which it is still recovering.  Korea has provide d emergency aid to assist Fiji in the wake of the 
flood, and looks forward to providing more assistance in due course. 
85. Bilateral trade between our two countries has been growing steadily since 2006.  We hope 
that this is a positive trend that will continue.  In order to do so, however, we hope Fiji will look 
towards further liberalizing its tariff regime.  Though  the tariff structure has been simplified, applied 
MFN tariff rates have edged upwards, which goes against Fiji's stated goal of gradual tariff 
reductions. 
86. Also, given that Fiji looks towards exports a nd foreign investment for its economic growth, 
Korea would like to encourage Fiji to review and re form its current trade and investment laws.  We 
are of the view that introducing effective and tran sparent legal framework in itself will send a clear 
signal of Fiji's commitment to economic reform and will assist Fiji in attaining its goals as set under 
the "Sustainable Economic and Empowerment De velopment Strategy (SEEDS) of November 2007. 
JAPAN 
87. Japan appreciates utmost efforts taken by the Government of Fiji and the WTO Secretariat to 
convene this second trade policy revi ew since 1997. It is Japan’s hope  that this dialogue enhances 
mutual understanding of Fiji’s trade a nd economic policies. It is also shared view that TPR provides a 
mechanism for Members to be further integr ated into the multilateral trading system. 
88. Let me refer to Fiji’s economic policy. Like ot her countries, Fiji has been affected by the 
recent deterioration of the global economy, and is  facing economic difficulties in reducing exports, 
tourism and the remittances from overseas workers. Despite of this situation, Japan notes with 
pleasure that the Government of Fiji takes relativel y reliable economic measures such as its monetary 
policy and fiscal policy. Japan, in particular, a ppreciates Fiji for introducing various types of tax 
incentives in order to promote industries. As the Government report mentions, it is also commendable 
that Fiji has made its effort for current economic and structural refo rms, in order to develop export 
competitiveness to be able to surviv e a preference free world and to be fully integrated into the global 
economy.  
89. However, Japan must point out that continuity is  regarded as a vital in terms of Fiji’s trade 
measures including tax policy. With respect to measur es to promote investment, for instance, Japan is 
of the view that these incentives are often effective in an only short or limited period so that it would 
be unclear whether these measures provide enough in centive for private companies to invest to the 
Fijian economy in a long-term. Another significant el ement related to the c ontinuity might be to 
overcome its political instability.  
90. Let me turn to Fiji’s participation in the WT O and DDA. Japan appreciates that Fiji is fully 
committed to implementing its WTO commitments.  Japan welcomes Fiji’s intention that all the 
notifications to the WTO will be submitted in 2009 . Despite of a non-resident WTO Member with no WT/TPR/M/213 
Page 16  
 
  office in Geneva, Fiji also attach es great importance to the DDA th rough the coordination of groups 
present in Geneva, such as SVEs and ACP States. It is in this context that the upward trend of tariff 
structure in Fiji, which is pointed out in the S ecretariat report, is worth to be considered.  
91. Japan has submitted three written questions on the fisheries sector. We very much appreciate 
that Fiji has circulated its responses this morning.  Tokyo will consider them carefully in order to 
enhance its understanding of Fiji’s trade po licy and for future possible cooperation. 
92. In conclusion, as an island country like Fiji, Jap an sincerely hopes that Fiji will continue to 
implement its economic and structural reforms with assistance from the WTO and international 
community, in order to enable Fiji to diversify its  economy as well as in order to benefit from the 
multilateral trading system.  
CANADA 
93. Trade in goods between Canada and Fiji had cha nged considerably since the last review of 
Fiji's trade policy in 1997. 
94. Canadian imports from Fiji had risen by 324 per cent, from just under US$2 million in 1997 
to over US$7 million in 2008. 
95. Unlike imports, Canadian exports to Fiji had fl uctuated from year to year over the same 
period. 
96. Canada welcomed the fact that Fiji's 2008 bu dget revealed a strategic focus on sustainable 
economic development, which included a return to  democracy, strengthening governance, weeding 
out corruption, modernizing administration and re forming the public sector and public financial 
institutions. 
97. Since publishing the 2008 budget, Fiji had undertaken a whole series of reforms with a view 
to supporting its new strategic focus.  Canada co mmended Fiji for the measures taken to establish an 
independent regulator for the telecommunications  market and for acceding to the United Nations 
Convention against Corruption in May 2008. 
98. Canada also applauds Fiji for its plans to st reamline customs regulations by fully adopting 
international custom standards through particip ation in the World Custom Organization's (WCO) 
Columbus Programme. Fiji's online customs registrati ons network is another constructive initiative in 
this regard.  
99. Recognising the efforts that Fiji has made to liber alize trade, Canada cannot help but note that 
many of the current policies continue to impede liberalisation initiatives. For example, despite the 
interim government's stated intentio n to lower tariffs and adopt a si mplified tax structure, Fiji's MFN 
tariffs continue to rise.  
100. We also note that 50% of Fiji's tariff lines re main unbound and that there is a considerable 
gap between bound and app lied tariffs. Canada encourages Fiji, in the interest of creating a more 
stable and predictable trade environment, to bind outstanding unbound tariffs and to reduce or 
eliminate the gap between bound and applied rates.  
101. Canada encourages Fiji to continue promoting an economic environment that will stimulate 
economic growth. This includes simplifying and increasing transparency in the private investment 
approval process. Achieving a simple, transparent and equitable tax system is also important.   WT/TPR/M/213 
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  102. Canada recognizes that, as a small and vulnera ble economy, the task of lowering taxes, 
decreasing tariffs and liberalizing fore ign investment can be challenging.  
103. In this regard, Canada believes that an ambiti ous and balanced outcome in the Doha Round is 
the most effective way to realize trade's pro-development potential.  
NEW ZEALAND 
104. The Secretariat’s report notes that Fiji’s GDP relies heavily on the ag ricultural, forestry, 
fishing and subsistence sectors.  New Zealand e xports make up a significant proportion of total 
imports to Fiji, with a significant portion of tho se exports relating to the agricultural sector.  
105. In agriculture dependent economies such as ours, biosecurity assumes a particular importance.  
We would encourage Fiji to look at ways to stre amline its procedures for approving requests for new 
access for horticultural products and for lifting restric tions once sanitary or phytosanitary risks have 
been addressed. New Zealand continues to encounter some issues with respect to Fiji’s biosecurity 
procedures. We look forward to the establishment of  Fiji’s new Biosecurity Ag ency to address issues 
such as these.  
106. The Secretariat’s report notes that since the last Trade Po licy Review, Fiji has undertaken 
some trade related reforms. We encourage Fiji to c ontinue this process with a view to the promotion 
of sustainable economic development.  Efforts to re duce protection, including in services sectors, will 
improve the efficiency and competitiveness of Fiji’s economy and offer substa ntial benefits to Fiji 
businesses and consumers.  The Secretariat’s report not es, however, that tariffs have still been used 
selectively to protect industries and that Fiji’s applied MFN tariff rates have continuously edged 
upwards with average MFN rates rising from 7.9% in 2003 to 11.3% in 2008.  The significant margin 
between Fiji’s negotiated bound tari ff rates and its applied rates l eaves considerable room for 
fluctuation in tariff rates.  We would encourage Fiji to consider carefully the impact which changes to 
applied tariff rates have on conf idence and certainty amongst trader s and consequently on volumes of 
trade.   
107. Fiji in its report emphasises the need for Aid for Trade to assist Fiji meet its existing 
commitments and to implement new commitments from the Doha Development Agenda. We would 
encourage Fiji to assess how effective previous tr ade-related assistance has been and to look what 
lessons can be learnt from effective trade-related assistance We would also encourage Fiji to ensure 
that aid for trade is given appropriate consider ation in its Sustainable Economic and Empowerment 
Development Strategy (SEEDS) 2008-2010.  
108. Finally we would like to commend the conclusion drawn in Fiji’s own report that reform of 
trade policy is important, not in and of itself, not simply to comply with WTO obligations, but in 
order to support private sector development, to mi nimise distortions and business costs, to maximise 
the economic benefits from trade, and most importa ntly to act as a driver for sustainable economic 
growth and development. 
BRAZIL 
 
109. At first, I would like to point out that Brazil recognizes the difficulties that small islands such 
as Fiji may face in order to promote the diversifica tion of its economy and to reduce its vulnerability. 
In particular in troubled times as we now live in, we are of the view that the multilateral system can 
play a fundamental role in assisting Fiji to overcom e the challenges it is confronted with. In this 
context, it is really up to developed members and developing members in a position to do so to put 
their human and financial resources at the disp osal of vulnerable economies by developing 
programmes on aid for trade and by providing real ma rket access to products originating from them.  WT/TPR/M/213 
Page 18  
 
  110. Secondly, my delegation is sorry to note that  recent macroeconomic indicators portray a 
deteriorating scenario with increasing inflation ra tes, GDP contraction and high government total 
indebtedness. Furthermore, preferences erosion a nd unduly non-tariff barriers faced by Fijian exports, 
such as in the fishery sector further compoun d the difficulties faced by the economy.  
111. However, on a more positive note, we are glad to  learn from the report of the Secretariat that 
the country has liberalized and rationalized its forei gn investment regime vital to Fiji’s economy. It is 
also worth mentioning the improvement in customs operations, the adoption of the transactions value 
as the main method for customs valuation and the establishment of the Fiji Independent Commission 
Against Corruption, in April 2007.  
112. We would like therefore to express our support and our wish that the Fiji’s Government will 
be successful in increasing labour productivity and in strengthening of its legal business framework, 
in order to reduce costs and to attract private-sector  investment. We hope that further reforms will be 
able to revert the current tendency of accumulati ng losses in the sugar and clothing sectors and that 
those reforms, along with cooperation from important trading partners, will also help the country to 
fulfil its potential as far as fishery and forestry are concerned.  
113. Even tough figures of our bilateral trade are still very modest, reaching US$ 1 million per 
year, we are pleased to observe that recently there h as been an intensification of our bilateral relations. 
In March last year, the Brazilian Special Envoy for Asia, Ambassador Marques Porto, paid a visit to 
Suva, where he held talks with the Fijian Minister  of External Relations, H.E Ratu Epeli Nailatikau. 
Later last year, in October, the Minister for Prim ary Industries, Mr. Joketani Cokanasiga, accepted an 
invitation from the Brazilian Minister on Agriculture, Livestock and Supply and paid a visit to Brazil.  
114. On that occasion, we had the pleasure to sh are with the Fijian authorities our research 
activities in the area of agribusiness and we were also able to identify some potential areas for 
cooperation, such as on the conservation of genetic resources and on animal reproduction. Besides, we 
are aware of the common interests in the energy sector, in particular for the production of biofuels. We recognize therefore that there is much room for relevant collaboration in the coming years.  
AUSTRALIA 
115. Australian economic engagement with Fiji has a long and extensive history. Australia is one 
of Fiji's major export destinations and the second la rgest source of Fijian imports. Trading in the 
textile, IT and agricultural sectors is particularly st rong, and two-way trade is  now worth nearly A$1.4 
billion annually.  
116. Australian companies have substantial investment  interests in Fiji, principally in banking, 
insurance and accounting. Australia remains by far the largest foreign investor in the Fiji economy. 
Australia is however concerned about the ongoing stability of Fiji's foreign currency reserves, 
particularly in light of the global economic crisis  and the recent flooding in Fiji. This problem is 
compounded by a continuing merchandise trade deficit, decreased tourism revenue, decreased remittances and limited foreign direct investment. The downturn in foreign direct investment has 
largely resulted from the military  coup in December 2006.  
117. The textile, clothing and footwear trade has b een declining in Fiji over recent years. Through 
the SPARTECA and SPARTECA (Textile, Clothing and Footwear Provisions) Schemes Australia aims to provide Forum Island Countries with unrest ricted access to Australian markets across a wide 
range of products, including textiles, clothing and foot wear. This scheme was due to expire at the end 
of 2004, but Australia has extended it until 3 1 D ecember 201 1. This extension will assist workers 
and companies in Fiji's TCF industry adjust to a competitive international trade environment.   WT/TPR/M/213 
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  118. Trade is vital to both Australia and Fiji's economi es and we have a shared interest in a strong, 
open and rules-based multilateral trading system. Austra lia very much welcomes Fiji's stated intention 
to phase out tariff protection for domestic industries.  However, the gradual increase in Fiji's tariff 
protections since 2003 is of concern. Fiji's plan to  almost halve fruit and vegetable imports in 2010 
may result in further tariff protections and/or import restrictions. It is unclear to us how this policy 
will interact with the intention of lowering tariffs on input products for agriculture.  
119. Australia encourages Fiji to take steps to reform  its sugar industry. Sugar is one of the major 
agricultural commodities of Fiji, providing employment for a significant percentage of the population. However, Fiji faces declining prices for its sugar e xports over the next few years. This problem has 
been exacerbated, regretfully, by damage to s ugar crops and infrastructure occasioned by the recent 
severe flooding in January this year. Improving produc tivity through reform of the sugar industry will, 
it seems to us, be key to ensuring the industry remains competitive.  
120. We welcome Fiji's stated commitment to implementing its WTO obligations. Australia 
encourages Fiji to comply with its WTO notifica tion obligations, particularly in the areas of 
agriculture and domestic support. The submission of outstanding notifications is crucial to enabling 
WTO members to review Fiji's compliance with its  WTO commitments. Further, Fiji's practical 
implementation of its obligations under the TRIPS agre ement is central to the prevention of copyright 
and intellectual property breaches.  
121. Australia looks forward to working with Fiji a nd other Members to conclude the Doha Round 
as soon as possible in 2009. In the current economic climate, concluding Doha is vital to stimulating economic confidence and addressing the risk of a protectionist response.  
122. Our questions for this review reflect the strengt h of Australian interests in the Fiji market. Our 
questioning addressed aspects of the Fijian economy,  including agriculture, competition law, and 
intellectual property rights. We would like to than k Fiji for its early responses to our questions and 
look forward to examining them during the review. We  also look forward to working with Fiji during 
the course of this review.  
EUROPEAN COMMUNITIES 
123. Traditionally we thank the Secretariat for its re port but regrettably this morning we cannot do 
that because we did find that the Secretariat Report fell short of the usual obj ectivity and quality that 
we have come to expect from the Secretariat.  We felt it provided rath er some unsubstantiated 
information about Fiji's Trade Policies and about the bilateral relationship between the EC and Fiji.   
124. In particular we felt that the WTO Report provi ded a rather unbalanced description of the key 
aspects and the potential impact of the Economic Partnership Agreement, which Fiji voluntarily 
signed with us in November 2007.  Little is said a bout the potential benefits and positive impact of the 
EPA but there is a lot of stress on negative aspects, which we think is uncalled for.  
125. First, the Report including the Executive Summary  refers to the "immense pressure" the EC 
exerted over Fiji to sign this agreement;  we find th is statement very surprising.  The ACP countries 
including Fiji and the EC signed the Cotonou Agreem ent in 2000, where we co llectively agreed that 
we had to negotiate and establish WTO-compatible  trade agreements after the expiration of the 
Cotonou waiver in 2007.  
126. Secondly, while dwelling at length on Fiji's current difficulties in meeting the EC SPS 
requirements the Report omits the fact that through the EPA the EC has considerably relaxed its rules 
of origin for fishery products – this was a ma jor political and economic concession on our part, which 
has massively development potential for a number of Pacific ACP states, including Fiji.  The report is WT/TPR/M/213 
Page 20  
 
  also rather short on the question of the very subs tantial development aid and technical assistance that 
the EC provides to Fiji to strengthen its economy.  We  are grateful to Fiji for having in its statement 
referred to the EC's support in this area.  
127. And finally, the Secretariat Report includes in accurate information regarding the parties' 
positions on the on-going negotiations for a full EPA, notably as regards services. No agreement has 
been reached on a rendez-vous clau se on trade in services or on the inclusion or exclusion of labour 
mobility.  
128. We would like to encourage the Secretariat to  strive towards more balanced and accurate 
description in all of its TPR Reports and that would provide a better basis for our work in this Body.  
129. The EC enjoys long-lasting trading relations w ith Fiji, which have been further strengthened 
and improved thanks to the initiation of an Ec onomic Partnership Agreement in November 2007, 
which also includes Papua New Guinea. All pa rties of this EPA are committed to the ongoing 
negotiations towards a comprehensive EPA containi ng provisions not only for trade in goods, but also 
development co-operation, fisheries, trade-relate d rules and other aspects with the whole Pacific 
Region. The coverage and scope of services remains unresolved for the time being.  
130. We firmly believe that the regional orientation of this Agreement, as well as the considerable 
development aid that accompanies it, will help the Pacific regional integration process, and with it 
economic prosperity. We are convinced, and I think th at Fiji is convinced, that the region-wide, rules-
based framework of the EPA will pl ace the Pacific, and Fiji, firmly on the map as a region more 
attractive to traders and investors.  
131. Further to this, the EC has over a number of years been providing development aid and 
technical assistance to Fiji in the framework of  the ACP co-operation, as well as the ‘Integrated 
Framework’. Development aid has been provided in al most all sectors, with the aim of strengthening  
economic and social structures, furthering trade, promoting regional integration and fiscal reform, 
supporting trade facilitation and WTO partic ipation.  For instance, under the 10
th European 
Development Fund, €32 million have been allocated for Fiji's development, together with a further 
€ 60 million of funds for the sugar sector for the period 2008-10, funding which can become available 
as soon as there is a marked political progress in Fiji, as established by the EU Council's decision of October 2007 concerning measures to be taken in the context of the Cotonou Agreement.  
132. The EC believes that our reinvigorated trade relationship with Fiji, based on the EPAs will 
stimulate economic growth, value added processing a nd new investment, all of which is essential in 
the current economic downturn which Fiji is facing.  Fiscal reform will play a very important part in 
Fiji's growth strategy. We would like in this fo rum to encourage Fiji to take steps to maximise 
government revenue collection, and to seek to br oaden the tax base through the elimination of tax 
exemptions, through improved tax collection includ ing via trade-facilitation measures, as well as a 
progressive shift towards direct taxation.  Any pot ential short term fiscal loss resulting from trade 
liberalization can be offset by expanding the domestic tax base.  In 2009, taxes collected on 
international trade are projected to represent only 32 % of overall tax receipts in Fiji. So it does appear 
that Fiji's fiscal revenue is starting to become more  diversified, and we encourage Fiji to continue the 
reforming path of its fiscal regime. 
133. Being a small country has potential disadvantag es. We, and the WTO system more generally, 
are increasingly beginning to understand the diffi culties that small economies such as Fiji encounter, 
including diseconomies of scale, human capital constr aints and in Fiji's case transport challenges. In 
order to overcome these difficulties, economic activity  that is not dependent on these factors – notably 
in services – is essential. And so are regional inte gration and the creation of  genuine regional markets 
to create economies of scale. This is why we and Fiji concluded and economic  partnership agreement  WT/TPR/M/213 
 Page 21 
 
 
  and this is why we encourage Fiji continue to ma ke progress towards greater economic integration in 
the Pacific which will be instrumental for the ec onomic prosperity of the region as a whole.   
134. As the Government Report notes while Fiji has ma de progress in liberalising its external trade 
regime, reforms continue to be needed. Most urgent  however for Fiji’s development is an early move 
towards parliamentary democracy. The EC encourag es the Government of Fiji to take the essential 
steps to increase political stability by  ensuring an early start to the political mediation by the UN and 
the Commonwealth. This, among many other things, would give a very welcome boost to Fiji's 
overall investment climate. Far more than either aid or preferential trade relations can do by themselves. 
135. We have submitted detailed ques tions on a number of measur es and look forward to the 
replies.  I will confine myself to making three points now.  
136. One a very broad issue, the others more specifi c. The more general and broad question is to 
ask Fiji how in practice it sees and tries to implemen t in its own policy making the link between trade 
and sustainable development; in particular, how do es Fiji plan to integrate the three pillars of 
sustainable development in its national strategy . We have the impression from our longstanding 
contacts with Fiji that Fiji does very well unde rstand the positive link between high levels of 
environmental and social protection, and long te rm economic growth and stability, but we would 
welcome it if Fiji could elaborate on this issue and explain its approach and strategy, and its 
experience with all of us in this room. 
137. My first specific issue concerns WTO notifica tions.  We understand that there are quite a lot 
of outstanding notifications requiring government ac tion, and we would simply want to use this 
opportunity to encourage Fiji to make more efforts to  fulfil this basic and routine but nonetheless very 
important WTO commitment towards transparency. 
138. The second specific issue and one of some concer n is regarding the remaining difficulties that 
Fiji is having in aligning it's SPS measures with in ternational recommendations. As mentioned earlier, 
the EC is providing substantial aid and technical assi stance to help Fiji meet international standards, 
particularly concerning the fisheries sector, and that for example in June there will be a major mission 
from the EC SPS authorities which will evaluate the adequacy of Fiji's domestic control system for 
fisheries and SPS.  We would again encourage Fiji to devote attention to a ligning and strengthening 
its SPS measures and we can assure Fiji that we will c ontinue to work closely with it so that Fiji can 
fulfil its enormous potential to become an important fisheries exporter. 
139. In closing, I apologize for having probably taken the floor for too long.  We greatly appreciate 
the opportunity to participate in this review of Fiji's trade policy.  We think that Fiji is a country with 
very great potential, we hope that this TPR exercise  will first of all give Fiji useful feedback on its 
policies, will give it additional material, arguments that will encourage it to follow a stable, open and 
progressive path of liberalization, and to make improvements where policies are wanting, and also 
that this review will provide food for thought for the rest of us.  
HONG KONG, CHINA 
140. Fiji and Hong Kong, China have maintained ve ry good trade relations. The bilateral trade 
between the two economies increased by a very encouraging 79% from 2007 to 2008, and we look forward to the continuation of this trend.  
141. Turning to trade policies, Chair, we note from the Secretariat and Government Reports that 
Services are by far the major contributor to Fiji' s economy, accounting for more than 70% of its GDP 
and three quarters of paid employment. Given the importance of services to its economy, a continued WT/TPR/M/213 
Page 22  
 
  effort to liberalise trade in services will be crucia l for its further economic growth and sustainable 
development. We would commend Fiji's initiatives and efforts in liberalising its foreign investment 
regime by removing nearly all foreign equity limits, and in introducing regulatory reforms and 
liberalisation measures in different sectors, particular ly the infrastructural sectors of financial services, 
telecommunication services and transport services.  We  look forward to Fiji's continued effort in this 
direction, especially in respect of those sectors wh ich are still subject to government intervention and 
state ownership, so as to enhance the competitiv e environment for trade in services and in turn 
increase the overall competitiveness of its economy. 
142. While Fiji's existing commitments under GATS ar e limited to certain tourism and travel-
related services, we are glad to note that it has proposed to include quite a number of new 
commitments for other sectors in its initial offer ta bled for the current round of Services negotiations.  
However, despite the liberalisation measures undert aken for financial services, telecommunication 
services and transport services in recent years, th ere has been no offer of commitments for those 
sectors. We would encourage Fiji to include such co mmitments in its next offer so as to enhance the 
legal certainty and predictability of its Services regi me.  On a related note, we understand that tourism 
is vital to its economy and is the largest contri butor to economic growth, investment, and foreign 
exchange earnings. We would encourage Fiji to lib eralise further and undertake more substantive 
commitments in the tourism sector, whic h we believe will benefit the economy.  
143. On trade in goods, we note that Fiji's applied MF N tariff rates have incr eased from an average 
of 7.9% in 2003 to 11-3% in 2009. The upward tre nd was mainly due to a decline in duty-free tariff 
lines, the number of which fell from 9.5% in 2003 to 3.10% in 2009. Tariff escalation is significant in 
Fiji for certain industries, for example textiles and l eather;  chemical;  paper;  printing and publishing. 
Moreover, the average applied MFN tariff rate is far below the bound rates. We would like to encourage Fiji to liberalise trade in goods further, in line with its development needs and to consider 
narrowing the gap between bound and applied rates so as to enha nce the predictability of its tariff 
regime.  
144. On standards and technical regulations, we note that Fiji's few standards and technical 
regulations have mostly been adopted from Australia  and New Zealand. We also note that it signed a 
Memorandum of Understanding with Standards Australia Internationa l in 1998. We would encourage 
Fiji to continue with the development of the mutual recognition of standards, in order to facilitate the 
free flow of goods.  
145. Finally, we would also like to encourage Fiji to continue its efforts to improve its notifications 
to the WTO on subjects such as import licensing, in  order to provide greater transparency to its 
trading partners.  
INDONESIA 
146. My delegation is also glad to note alt hough Fiji's economy has slowed down since its 
previous Trade Policy Review, that economic gr owth has been erratic, and generally sluggish, 
averaging less than 1% annually during the period  2003-2008, but Fiji's medium-term macroeconomic 
targets to achieve annual real economic growth of 5%, reduce inflation to under 3% over five years, 
boost foreign reserves will be valuable. 
147. We believe that continue prudent economic  policies and by a Government decision on 
"medium-term macroeconomic targets", which desi gnates the course of economic and fiscal reforms 
for boosting the growth potential of the Fiji economy,  will contribute further to Fiji economic growth. 
148. Indonesia note that Fiji is one of the most important trading partner where the Fijian 
economy, is the second largest in the South Pacific.  Its noted that we have maintained a good trade  WT/TPR/M/213 
 Page 23 
 
 
  relation, although the total trade still small, but our bilateral trade shows that we could expand it in the 
future to a substantial growth.  My delegation ho pes that both countries will continue to strengthen 
our sounds bilateral trade.  My delegation has su bmitted some questions and would need time to learn 
the answers in depth. 
HONDURAS 
149. Honduras was pleased to note, in the Secretariat Report, that trade reforms were integral to 
Fiji's economic priorities of developing an effi cient, and therefore competitive, open economy to 
promote export-led growth, although exports had been damaged by preference erosion. 
150. Honduras further noted that trade and foreign in vestment were of vital importance to the 
country.  Fiji's principal sector was services, give n its contribution to GDP;  agriculture, on the other 
hand, was vitally important for subsistence, especially in rural areas. 
151. As a small-island developing c ountry, Fiji supported the interests of the Group of Small and 
Vulnerable Economies (SVEs) and of Like-Mi nded Economies in the WTO.  While supporting 
agricultural liberalization, it felt that their cont ributions should reflect capacity constraints and 
vulnerability as well as policy goals and development n eeds.  It saw an open global trading system as 
vital to reducing poverty, and agricultural trade as a key factor in achieving higher incomes and 
sustainable development. 
152. Technical assistance in Fiji was fundamental in most areas of trade policy formulation and 
implementation, including on unilateral,  multilateral, and regional initiatives. 
153. Certain trade reforms undertaken by Fiji were part icularly significant, such as the reform of 
the tariff, which remained the principal trade pol icy instrument and an important source of tax 
revenue.  Fiji had also improved its customs ope rations, and had adopted the transaction value 
method.  Despite efforts to impr ove government procurement, new le gislation had been suspended.  
Exports were controlled by an extensive export licensing system.  Although Fiji had not joined any 
more WIPO treaties since 1998, it had amended its copyright and pa tent laws.  Honduras encouraged 
Fiji to continue with its reforms,  which should allow the country to expand its trade with more trading 
partners. 
DOMINICAN REPUBLIC 
154. The Dominican Republic underscored the importa nce that Fiji attached to an open global 
trading system as a means of fighting poverty a nd promoting capacity building, which would ensure 
higher incomes and sustainable development in all ar eas of its economy.  Fiji was a signatory to the 
Cotonou Agreement, established in 2000 between the EU and the ACP countries, and was currently 
engaged in the process of finalizing an Economic Part nership Agreement with the EU.  It had signed a 
number of bilateral and regiona l agreements, and belonged to the WTO Group of Small and 
Vulnerable Economies (SVEs), within which it ha d played a leading role, especially in the 
negotiations on fisheries subsidies. 
155. In that context, it was important to emphasize that in the midst of considerable domestic 
challenges and the current turmoil on the global fina ncial scene, Fiji had undertaken to refocus its 
trade strategies with an emphasis on greater openn ess, taking into account its constraints and the 
vulnerability of its infant industries.   Such industries shoul d be supported by spec ific policy objectives 
to encourage their survival and competitiven ess as they adapted to market liberalization. 
156. On that basis, whilst recognizing that Fiji had benefited from trade-related technical 
assistance since its last Review and that its constr aints in terms of resources limited its multilateral WT/TPR/M/213 
Page 24  
 
  response capacity, including transition from reliance  on preferences to a more open and competitive 
economy, the Dominican Republic believed that Fiji need ed further technical assistance in most areas 
of trade policy formulation and implementation.  The Dominican Republic encouraged Fiji to use 
such assistance to undertake reforms that would en sure more efficient appr opriation and management 
of its own resources, promote greater competitiveness  and diversity in its eco nomy, and lead towards 
more profitable outcomes from its trading schemes. 
MAURITIUS 
157. In addition to belonging to the group of sma ll island developing states and members of the 
ACP Group, Mauritius and Fiji share a lot in comm on in the trade and economic areas. Like in 
Mauritius, sugar, textiles, fisheries and tourism are key economic sectors in Fiji.  Both of our 
countries face the inevitability of preference erosi on in our traditional export markets. As small and 
vulnerable economies, both have inherent constrai nts and are vulnerable to both external economic 
shocks and natural disasters. Therefore, we can fully understand and measure the challenges facing 
Fiji which have been compounded by the current global recession.  
158. Fiji has a relatively high Human Development Index and ranks as a middle income 
developing country. It is a country with great pot ential and arguably among the best human resources 
in the Pacific. Fiji's social indicators remain high by  many standards, and the quality of social services 
delivery is rated good.  Moreover, Fiji is very lik ely to achieve the social sector MDGs by 2015, 
particularly those pertaining to higher life expectan cies, lower infant and maternal mortality rates, 
lower gender disparity in primary and secondary education, and unive rsal primary school enrolment. 
Nevertheless, poverty in the country  remains a growing concern.  
159. With the textile and sugar expor ts showing declines mainly as a result of preference erosion, 
and decreases in remittances, the t ourism sector, like in Mauritius, offers a great opportunity for 
further growth: It is one of largest foreign ex change earners, providing employment-directly or 
indirectly-to some 40,000 Fijians (15% of the la bour force).  Fiji's natural beauty and pristine 
environment provide the scope for sustained high gr owth. We would encourage Fiji in its efforts to 
further consolidate the resilience of this sector.  
160. Moreover, information technology-based servi ces and audio-visual industries also offer 
growth opportunities. The forestry sector also is lik ely to enjoy higher growth. Fisheries will remain 
one of the key sectors of the economy. However, the country needs to respond effectively to regional 
and global developments in these sectors. We woul d humbly suggest, in this regard, promotion for 
greater and sustained private sector participation.  
161. As mentioned in the WTO Secretariat" report, in ternational trade and investment are crucially 
important to Fiji given its small domestic market , limited natural resources and inevitable lack of 
economic diversification.  In this regard, we are pleased to note that since its last Review, Fiji has 
undertaken some important structural and economic reforms and these reforms are seen as integral to 
Fiji's priorities of developing an efficient, competitive and open economy to promote export-led 
growth. It is also gratifying that Fiji's manufacturing policy goats are to diversify and expand the 
sector by developing competitive, high value-added industries. Again, Mauritius encourages Fiji in 
these initiatives.  
162. Investment remains key to lifting Fiji's economic gr owth. In Fiji, as elsewhere, in the face of 
failing investment, there is need to improve investment climate through required policy and 
institutional changes. We, therefore, note with satisfa ction that Fiji has liberalized and rationalized its 
foreign investment regime. We further encourag e Fiji in these efforts and hope that these ongoing 
reforms will boost investment, productivity and business confidence.   WT/TPR/M/213 
 Page 25 
 
 
  163. Fiji continues to demonstrate a strong commitmen t to regional integration as evidence by its 
membership in a number of regional trade and econo mic arrangements.  According to the Government 
report, Fiji views these arrangements as "important  stepping stones towards fuller participation and 
integration into the world economy". This is a vision  shared by many developing countries, including 
my own. Mauritius, therefore, supports Fiji in its efforts to deepen its regional integration while 
complying with its WTO obligations.  
164. According to a recent report of the Asian De velopment Bank, some of the gains resulting 
from an increase in merchandise exports in 2008, partic ularly in exports of sugar and mineral water, 
were overshadowed by a rise in merchandise imports due in part to high oil prices. The report also 
notes that high oil and food prices have put added pressure on low-income communities. This is yet 
another demonstration of vulner ability to external shocks.  
165. In the face of such a great vulnerability, the Government report calls on the WTO to put 
greater emphasis on the needs of SVEs, especially sm all island countries. Mauritiu s fully supports this 
call.  
166. Fiji is fully aware that overcoming its structura1 economic challenges requires a 
comprehensive economic reform program. The two r ecently adopted economic strategies, namely the 
Sustainable Economic and Empowerment Stra tegy (SSEDS) 2008-2010 and the National Export 
Strategy (NES), seek to achieve this economic  imperative. We express the hope that the 
implementation of these two critical reform progra mmes, in a results-based approaches, will provide 
the necessary macro-economic foundation that w ill foster export-led growth, enhancement of 
productive capacity, employment generati on, and sustained poverty reduction.  
167. Nevertheless, while we encourage Fiji in these challenging yet laudable tasks, we are fully 
cognizant of the fact that, and as mentioned in th e Government report, Fiji, as a SVE, will require 
appropriate support, including through Aid for Trad e, from the international community. We would, 
therefore, in conclusion, call on the development partners of Fiji, to be by the side of Fiji.  
KENYA 
168. We have noted the new economic orientation th at the country has embraced which includes 
among others trade liberalizati on and economic deregulation for its economic recovery thereby 
registering a growth rate of 2.5%.  We also appr eciate its macroeconomic mana gement particularly as 
it relates to monetary growth, infla tion and exchange rate which has he lped the country to maintain its 
export competitiveness. 
169. We take note that Fiji has bound all its agricultu ral tariffs and 43% of its industrial tariffs 
making the market more predictable.  Generalized schemes of preference (GSP's) and non-reciprocal 
preferences continue to facilitate the country to  access the developed markets for its external trade 
growth and economic advancement.  Further we have noted that its  import trade regime has been 
significantly liberalized and simplified and the local -content requirement is no longer a factor in its 
domestic production.  Export-performance requireme nt is only restricted to Tax Free Zones. 
170. In respect to sectoral policies we have noted th at both agriculture and industry have resorted 
to tariffs as a measure of protecting the two sectors and that with regard to services, a schedule of 
specific commitments under GATS on tourism and travel -related services has already been notified to 
the WTO. 
171. It is against this background that I wish to c onclude by congratulating Fiji for the broad base 
market oriented trade policies and economic reform s that are under implementation.  We encourage WT/TPR/M/213 
Page 26  
 
  them to extend the same reforms in the areas of competition and investment regime to attract more 
FDI's for faster economic growth rate. 
INDIA 
172. As per Fiji’s report, the country has a narrow ec onomic base which relies heavily on tourism, 
sugar and garment exports. Economic  growth during the period u nder review has been volatile, 
averaging less than 1% annually between 2003 an d 2008. The economy grew by about 3.4% in 2006 
before plunging by -6.6% in 2007 mainly as a result of poor performances in nearly all sectors. The 
economy's performance showed signs of substantial slowing before the December 2006 coup, which 
accentuated its contraction. It wa s also affected by global challenges and the major export industries 
such as textiles, sugar and tourism were severely affected. 
173. Fiji’s economy faces challenges with down-turn  in business activities, escalating prices and 
declining investor confidence. A substantial a nd widening gap between do mestic investment and 
national savings resulted in rising trade and current account deficits. 
174. Fiji’s merchandise trade deficit has continued to deteriorate to around F$1.9 billion by end of 
2008.  Domestic exports rose by 13.6% and we re supplemented by earnings from re-export, 
contributing to higher growth for total exports (16. 7%). Sugar and clothing accounted for about 52.3% 
of total merchandise exports in 2002 but this had d eclined to 25.9% in 2007. However, imports grew 
by 24.2% in 2008.  For 2009, the trade deficit is expected to widen as exports are expected to slow down significantly while imports are envisaged to grow.   
175. The Secretariat has rightly noted  the speed at which the economy recovers will hinge on the 
Government's ability to meet these economic challe nges, including re-structuring of the economy to 
improve productivity and thus international competitiveness, especially given the pressures 
confronting clothing, tourism, and sugar exports  following domestic and external developments. 
Macroeconomic stability revolves around continued fi scal discipline and prudent monetary policy to 
curb inflation and address external imbalances, th e source of foreign reserve pressures.  Attracting 
greater FDI will also be important for economic prosperity.   
176. The Secretariat report has observed that tw o coups since 1998, the more recent in 
December 2006 established the current interim Govern ment in January 2007, have added to political 
instability, with adverse economic consequences fo r an already weakening economy. Confronted by 
economic difficulties, Fiji's global ranking as a de veloping country on the UN Human Development 
Index has slipped from 81st in 2003 to 92nd. We note that Fiji in its report has stated it’s commitment 
to economic reforms, including those pertaining to trade and foreign investment, as well as the return 
to parliamentary democracy in order to stem political uncertainty.  
177. We have noted that Fiji would like the WTO to  support both a trade (DDA) and development 
(Aid for Trade) solution for addressing its concerns  on negative effects of trade liberalization. We 
support Fiji in this endeavour. 
178. India and Fiji share historic, cultural and dias poric relations. On May 14, 1879, the Leonidas, 
the first ship carrying indentured Indians, arrived in Fiji with 463 immigrants aboard. They were in 
response to Fiji's dwindling supply of labor. Be tween 1879 and 1916 around 60,000 "Girmitiyas", a 
corruption of a Hindi word for contract, were brought  by British. After their term of service, many 
remained in Fiji. Some became merchants and busi ness-people. Prior to Fiji ’s independence in 1970, 
India had a Commissioner to look after the interest of people of Indian origin. Some notable Indo-
Fijians in the international arena include golfer Vijay Singh.  WT/TPR/M/213 
 Page 27 
 
 
  179. Indian exports to Fiji which were US$29 million in 2004 have risen to US$ 78.8 million in 
2008-09.  Major exports from India to Fiji are mine ral fuels, drugs and pharmaceuticals, transport 
equipment etc. Imports by India from Fiji were US$0.43 million in 2008-09. 
180. India is providing assistance for the restructure of Fiji Sugar Industry through modernization 
of sugar mills for which EXIM Bank of India gave a line of credit of US$ 50.4 million to the Fiji 
Sugar Corporation. The Sugar Technology Mission of  India had earlier carried out detailed feasibility 
studies in this regard. Indian experts from the Ce ntral Plantation Crops Research Institute, Kerala 
visited Fiji Islands in 2008 and assisted Fiji’s Coc onut Industry Development Authority and presented 
a blueprint covering a projection of 25 years, for the development of coconut industry. The Fiji Trade 
and Investment Bureau(FTIB) visited India last year with a mission primarily focusing on the ICT 
sector.   
181. Indian Culture Centre in Fiji is offering classe s in Indian classical music, yoga and Hindi 
language. To assist Fiji’s recent implementation of three-language formula, last year India donated 
19,000 Hindi language books, thereb y supplying study materials in all the primary and secondary 
schools of Fiji. In view of the flood and devastatio n in Fiji Islands earlier this year, Government of 
India sent a donation of US$100,000.  
182. India in Fiji has focused on social and econom ic assistance programmes while continuing its 
emphasis on the need for Fiji to return early to democratic system for stability and economic development and to promote peace and harmony amongs t major communities. I wish to add here that 
Minister Sayed-Khaiyum during his studies has completed two important and relevant theses on Cultural Autonomy, and Constitution making in 'Divided Societies' -“Fiji a case study ". I hope with 
his rich wealth of knowledge, experience and curre ntly holding important positions, Fiji will take 
concrete steps for restoration of civilian  constitutional democracy in the country.  
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
183. My delegation was not able to submit any questi ons in advance of this meeting, but we are 
very interested in learning more about Fiji and its  trade policies, especially as its delegation is not 
resident in Geneva. 
184. Fiji has been experiencing a difficult enough time in  recent years.  Now, the global financial 
crisis, which has turned into a serious economic dow nturn in such a short time-span, can only make its 
economic revitalization efforts more challenging.  Fo r Fiji to emerge safely from the storm, with a 
good trade policy and a business friendly administration is  even more crucial than before.  We would, 
therefore, like to make two observations which might be helpful to our Fijian colleagues.  
185. Firstly, the focus of Fiji’s trade policy app ears to be wavering somewhat between import 
substitution and export expansion.  Our view is  that, the effectiveness of a policy of import 
substitution might be the more doubtful of the two, especially for a small economy.  Without the benefit of a substantial domestic market, economic growth is usually  more dependent upon promoting 
exports. 
186. Secondly, we note from the report that agricu lture remains vital to the economy of Fiji, 
notwithstanding its falling share of the GDP and low productivity.  The fact that Fiji has been importing more food than it exports seems to be in  contrast to its natural endowment and large 
potential in agriculture.  To achieve the multiple goals of enhancing econom ic growth, along with 
food security and poverty reduction, it would seem to  us that Fiji might do better to consider 
developing its agriculture further, by whatever means possible, including technical assistance and 
technology transfer.  In this context, my government  has some relevant programmes, which have been 
actively promoting in Fiji.  WT/TPR/M/213 
Page 28  
 
  BARBADOS 
187. The reports prepared for this meeting present evidence of an inherently fragile economy, 
where the combination of domestic challenges with  external conditions and events, including the 
recent natural disaster and current global recession have served to further exacerbate this small 
island’s vulnerability. 
188. As a small, vulnerable economy and fellow AC P Member, Barbados shares many of the 
preoccupations and challenges facing Fiji towards th eir full and beneficial integration into the 
multilateral trading system. Nevertheless, the loss of competitiveness including through preference erosion in key agricultural and manufacturing expo rts, increased import costs, heightened during 
recent food and fuel crises and reduced investme nt have increased Fiji’s existing structural 
deficiencies and enhanced social dislocation through unemployment and increased poverty. We 
therefore commend Fiji for its resilience and commitmen t to the fulfilment of its WTO obligations in 
the face of continued difficulties.  
189. While economic growth has been characterised as erratic and coupled with rising inflation 
during the period of review, we recognise that efforts are underway to stabilise and consolidate the 
fiscal deficit. We are pleased to note that since 2003,  there has been a greater diversification of export 
markets, while more recently fish exports and mi neral water have also been on the increase.   
190. Barbados is cognisant of the importance of th e services sector, dominated by tourism, to the 
Fijian economy. We support the important reforms that  have taken place with the recent liberalisation 
of the telecommunication sector as well as changes within the financial and ICT sector during the 
period under review. We also recognise and appreciat e the actions taken and those currently underway 
to promote and stimulate trade and investment, including through the streamlining of incentives.  
191. In spite of the decreasing GDP contribution of  agriculture, the sector remains of critical 
importance, not least because of its centrality to the sustainable livelihood and economy of the Fijian population. Fisheries is another sector vital to the survival of many small-scale farmers and their 
families. The sector currently faces tremendous pr essure through preference erosion, competition and 
other trade related challenges.  
192. Fiji has been working earnestly to promote a more favourable environment for trade, 
investment and development. We support the propo sed legislative and institutional measures intended 
to fulfil the same. However this will not be an unde rtaking that Fiji will be able to withstand alone. 
Fiji has identified a number of sectoral and other tr ade related areas in which it will need technical 
assistance, including trade facilitation, fisheries, competition and government procurement among 
others. We urge that these calls are heeded in a timely and sustainable manner. 
193. It is clear that the diseconomies of scale and vu lnerability to exogenous and variable factors 
which characterise economies like those of Fiji as we ll as our own, require targeted action to help 
address inherent supply side constraints and deve lop export competitiveness. Barbados, like Fiji 
considers that the Aid for Trade initiative is one of the mechanisms, which could provide our 
countries with the assistance to do this, as trade liber alisation by itself will not be enough to allow our 
economies to take full advantage of the mark et access opportunities intended through the Doha 
Round. Aid for Trade becomes even more rele vant in this current time of crisis.  We look forward to 
the forthcoming Second Global AfT Review session this year on the progress made in operationalising this initiative. 
194. It is no surprise that as a small, open economy, Fiji views and supports regional integration as 
a first step towards expanding markets, strengthe ning competitiveness and in general reducing its 
vulnerability towards fuller integration in to the international trading system.  WT/TPR/M/213 
 Page 29 
 
 
  195. Although a non-resident delegation, Fiji’s voi ce is suitably represented by the  Embassy in 
Brussels and Permanent Delegation of the Pacific Island Forum, the latter ably led by Ambassador 
Paolo Kautoke. We commend the acti ve participation of the Forum team in the Doha negotiations, 
including through the ACP and SVE groupings, where we  work closely to seek effective solutions to 
our specific trade related needs.  We particularly  appreciate the role of Ms Manleen Dugal as focal 
point for the Fisheries Subsidies negotiations within the ACP. 
196. Barbados endorses the Secretariat's conclusions on how Members can assist Fiji's economic 
recovery and help it to overcome a number of structur al challenges, particularly at this time of crisis. 
We hope that the conditions contributing to Fiji's pa rticipation in this House may therefore be taken 
into account by Members as Fiji seeks to realise effective and sustainable trade and development 
solutions towards their fuller integratio n into the multilateral trading system. 
TONGA ON BEHALF OF THE OTHER PACIFIC ISLANDS WTO MEMBERS AND 
OBSERVERS 
 
197. Fiji is Tonga's third major trading partner,  and together parties to regional economic 
integration efforts such as SPARTECA, Pacifi c Island Countries Free Trade Agreement, and 
Economic Partnership Agreement current ly under negotiations, and PACER. 
198. While Fiji is one of the larger economies in our region, however it is in no way free from the 
problems commonly faced by small vulnerable economi es, as has been well and clearly elucidated by 
the Hon. Minister.  Fiji's experience clearly show s the difficulties small vulnerable economies face in 
trying to integrate itself to the global economy. 
199. Despite these challenges, I commend the liberaliz ation efforts made by Fiji towards a more 
open and broad-based economy, and steps to dere gulate telecommunication services;  efforts to 
establish institutions that foster accountability and transparency in the public sector, are all 
recognizable efforts towards integration into the global trading order. 
200. I wish to add my voice to what Ambassador Black  raised with regards to Aid for Trade, and 
urge Members to consider how best they can assist Fiji and other smaller economies meet their 
capacity and supply side constraints. 
NIGERIA 
 
201. As a member of the ACP we have the opportunity  to be able to show our solidarity to Fiji 
during this review process.  Nigeria is pleased to par ticipate in this second trade policy review of Fiji.   
202. We note from the Government Report that as a small and vulnerable economy Fiji has been 
severely affected by major changes in the global trad ing system.  In this regard, we support the call by 
Fiji for the WTO to put more emphasis on the need of SVE's, especially smaller countries like Fiji that are vulnerable to natural and global shocks. 
203. Being a non-resident WTO Member we note that Fiji's participation in the DDA has been 
pretty difficult.  Nevertheless, its contributi on to the DDA through the Pacific Island Forum and SEP 
respectively, should be acknowledged. 
204. We have also benefited immensively from Fiji's contributions at the SEP focal point on 
fisheries.  We are pleased to note that despite all the challenges facing Fiji, Fiji is fully committed to 
implementing its WTO commitments, as well as its commitment to undertake further economic 
reforms in order to address the domestic and global  challenges confronting its economic growth and 
exports. WT/TPR/M/213 
Page 30  
 
  205. Lastly, we urge WTO Members and donor agencies to continue their support and assistance to 
enable Fiji to implement its reform programme, partic ularly its efforts in diversifying its exports and 
competitiveness.   WT/TPR/M/213 
 Page 31 
 
 
  V. REPLIES BY THE REPRESENTATIVE OF FIJI AND ADDITIONAL COMMENTS 
206. At the outset, I would like to express my delegation’s appreciation for the interest displayed 
in our Trade Policy Review through the strong presence of Members in the session on Wednesday and also today. I would also like to thank those Member s who spoke to highlight their trade relations with 
Fiji, others who spoke not only of developments in Fiji’s trade polic y that have been valuable to them, 
but also provided recommendations for our consideration. 
207. In your opening statement on Wednesday, you emphasized that the overall objective of the 
TPR exercise is to promote transparency and allo w other members to understand our trade policy with 
a view to providing constructive comm ents and sharing their experiences.  
208. In this context, comments and references made  on Wednesday on political issues that fall 
outside the ambit of the WTO are unhelpful and cont rary to the purposes and indeed spirit of the TPR 
process. Indeed, this is not the proper forum to re sponse to these issues. However, prompted by the 
raising of these matters, it is suffice to say the legally appointed interim government has put in place a political process with the objective of achieving sust ained parliamentary democracy, true democratic 
accountability and an electoral system based on universally accepted principles of equal suffrage. 
209. The focus and the concerns in the TPR shoul d be whether the government of the Member 
under review is providing the right environmen t which facilitates the objectives of the WTO. 
The current Government has in fact taken steps to improve and/or remedy prev ious policies that were 
not conducive to an open, transparent and fair trad ing environment, nor sustainable economic growth, 
nor real investor confidence. In fact, the polic ies of the previous government engendered an 
environment of clientelism, cronyism, corruption, and uncertainty, all of which are non-conducive to 
creating an investor-friendly environm ent and a level playing field.  
210. Most of the questions relating to Fiji’s trade policies and practices raised by Members on 
Wednesday have in fact been addressed in our wr itten responses to the advance questions which were 
circulated on Wednesday. We hope that Members have now had an opportunity to peruse these 
responses. 
211. Nonetheless, to stimulate discussion in today’s session, and given that some of the concerns 
were common to the interventions, I would like to take some time to elaborate on these according to 
the key themes identified by you Mr. Chairman, toge ther with the Secretariat and our Discussant.  
212. The broad themes are Economic Environment, Trade Policies by measure, and Sectoral 
Policies.  
213. Under the theme of the “Economic Environment” , I would first like to talk about Growth, 
inflation and reform challenges. Fiji has set very high goals for economic growth and is undertaking 
the necessary reforms in the context of its 20 year  Development Plan, the Sustainable Economic and 
Empowerment Development Strategy (SEEDS) 2008-2010 and the 2006 National Export Strategy 
(NES) to ensure that these goals are realized. Fiji has taken a number of measures to mainstream trade 
into its development plans.  
214. Our national strategy documents are aimed at  promoting economic gr owth and alleviating 
poverty. However, the Government policies and pl ans to address the macro-economic challenges and 
the development goals that have been put in place through SEEDS, in particular, are fairly recent; and 
it is too early to assess the impact of these policies.  
215. However, as noted on Wednesday, external challenges and pressures such as preference 
erosion, high food & fuel prices, the global fina ncial crisis and the devastating floods that Fiji WT/TPR/M/213 
Page 32  
 
  experienced in January 2009 have caused impediment s to achieving some of these goals in the short 
term.  In this context, the short to medium te rm goals are being review ed. Government remains 
committed to achieving the goals set out in the SEEDS and the NES.  
216. Fiji is completely dependent on imported minera l fuel and the increase in the world prices in 
2008 has had a dramatic impact on our import bills. In addition, the rising food prices have 
contributed to high domestic inflation. To mitigate the effect of the rising prices, Government 
implemented a number of policies and some of these include:  Removal of fiscal duties and Value Added Tax on key basic food staples;  Increase in the income tax threshold from $9,000 to $15,000 providing relief to low income taxpayers;  Direct  grant to privately owned bus companies which 
provide the main means of transportation to the trav elling public to ensure that bus fares were not 
increased in light of the rising fuel prices. Given th e reduction in global oil prices, this policy has been 
discontinued;  A three month reduction on duties on fuel in 2008; and Focus on increasing production 
of agricultural products to ensure food safety. 
217. Fiji’s foreign currency reserves have come under strain due to a high import bill caused by the 
dramatic increase in world oil and food prices, a low demand for our exports, and decline in 
remittances. Notwithstanding the decline in our fore ign reserve Fiji has adequate and stable foreign 
reserves.  
218. To assist in easing the burden on our foreign reserves in the medium to long term, Fiji is 
implementing policies to improve local food produc tion, promote the production of bio-fuels and use 
of renewable energy to reduce its re liance on imported mineral fuels.   
219. Fiji firmly believes that trade and investment play  a vital role in economic development. It is 
not accurate to say as commented by one of th e Members on Wednesday that Foreign Direct 
Investment (FDI) into Fiji has d eclined as a result of the events of December 2006. In fact FDI has 
progressively declined for a number of years.  
220. In recognition of this, government has introduced a number of reforms in order to attract FDI. 
Some of these measures include liberalization of th e foreign investment regime; providing transparent 
and stable rules for investment; improving and mode rnizing government services and systems such as 
the computerization of our companies office an d the proposed establishment of a stand-alone 
intellectual property office; and providing targeted , cost-effective and WTO-compatible incentives.  
221. Those investment incentives not compliant with  the WTO rules have been notified to the 
WTO and are being phased out. The new investment incentives are not contingent on exports or use of local products but simply require the investor  to meet the minimum capital requirements. These 
incentives will help Fiji to use trade and invest ment to achieve its development goals.   
222. Fiji has noted the comments made by its tradi ng partners on the need to undertake further 
reforms on the investment framework. We would li ke to assure all the WTO members that Fiji will 
take all the necessary measures to improve its inv estment environment and promote private sector-led 
economic growth. Fiji welcomes any specific re commendations and assistance to undertake such 
reforms. 
223. We firmly believe that investment plays a vital role in promoting export-led economic 
growth. To this end, the reserved and restricted lis ts in the Foreign Investment Regulations shall be 
further reviewed periodically with the objective of  liberalizing the economy.  Government is also 
committed to the ongoing reforms of public enterpris es including divestment of  government shares in 
such entities. It is also in the process of corpor atising certain government departments and outsourcing 
many of the state-performed services and functions and infrastructure development.  WT/TPR/M/213 
 Page 33 
 
 
  224. Hitherto Fiji has not entered into Investment  Promotion and Protection Agreements (IPPAs) 
because of concerns relating to its capacity to nego tiate and implement onerous obligations such as 
the requirement to guarantee foreign private investment s. However, Fiji is willing to consider relevant 
investment provisions in the context of br oader trade and develo pment partnerships.  
225. Fiji is involved in a number of regional tr ade arrangements includi ng the Melanesian 
Spearhead Group, Pacific Island Countries Trade Ag reement, Economic Part nership Agreement and 
Pacific Agreement on Closer Economic Relations . We view these arrangements as stepping stones 
towards fuller integration in the multilateral trading system.   
226. In the context of our negotiations on the EPA with the EC, Fiji acknowledges that some 
improvements to the rules of origin relating to proc essed fish have been made. We trust that further 
improvements will lead to the realization of the full export potential of this key sector.  
227. Given that we are involved in a number of fr ee trade negotiations, Fiji is concerned with the 
expected revenue loss resulting from trade liberalisa tion. Assistance would be needed to help Fiji 
implement the necessary adjustment measures. Fiji looks forward to more effective support from the 
EC and other trading partners to make the necessary adjustments in ensuring that the revenue lost is 
mitigated. In this context government aims to impr ove efficiency in tax collection by strengthening its 
tax administration.  
228. Fiji also needs assistance with establishing a na tional implementation strategy in respect of 
the EPA. Government’s existing inter-agency Tr ade Development Committee will be tasked to 
oversee the implementation of the EPA. These issues require significant technical and financial resources. Fiji, together with the other small and vul nerable Pacific island countries, looks forward to 
receiving adequate resources from the EC to implement the EPA. 
229. In 2008, government successfully introduced th e Employment Relations Promulgation (ERP). 
The implementation of the ERP will make Fiji compli ant with ILO obligations and standards, thereby 
promoting sound labour standards and practices. Necessary expertise and resources are required to 
successfully implement the ERP.  
230. Fiji’s participation in the Kyoto Protocol  and the negotiations of the 2012+ successor 
framework, and its being a Party to the Convention on Biological Diversity, demonstrates its commitment to internationally agreed environmen tal standards. However, the focus on these issues 
should be on building our capacity and the necessary institutions that are needed to implement these 
onerous undertakings.  
231. A number of Members expressed interest on our  outstanding WTO notif ication obligations. 
Whilst Fiji lacks the capacity to comply with its notif ication obligations, we will make every effort to 
ensure that all our outstanding notifications are submitted. In fact, just yesterday we have sought 
WTO technical assistance specifically to address the cap acity constraints that have hitherto impeded 
the timely submission of notifications thus far. 
232. Our Aid for Trade needs have been highlig hted in the recent WTO Aid for Trade 
questionnaire and in the Government report. I also outlined Fiji’s views on effective and appropriate 
Aid for Trade in my statement on Wednesday. In short,  Aid for Trade needs to be targeted, effective, 
demand driven and must be additional to existing aid.  We look forward to actively participating in the 
second Global Review on Aid for Trade in July. 
233. 
Even though Fiji does not have a mission in Gene va, we have been participating in the WTO 
through Fiji’s Permanent Representation based in Br ussels, with the support of the Pacific Islands 
Forum WTO Office in Geneva and with the SVE and ACP groups. However, we firmly believe that WT/TPR/M/213 
Page 34  
 
  direct representation in Geneva is absolutely vital. In order to participate effectively in the WTO, Fiji 
will need assistance from donor countries to cover the initial costs of establishing an office in Geneva.  
234. Let me now turn to issues raised within th e second thematic area of “trade policies by 
measure”. One of the most common issues raised by Members on Wednesday and which has been elaborated upon in our written answers is in relatio n to the upward drift of Fiji’s applied MFN tariff 
rates since our last review. In this respect, I would like to reiterate the following:  about 80% of Fiji’s 
total tariff lines (5781) are between 0 and 15 percent, signifying that a large component of our applied 
rates is already low. This tariff structure has been  maintained over the last few years;  these slight 
tariff increases were not imposed to restrict impor ts but were a legitimate revenue-generating measure 
necessitated to fund government’s poverty alleviatio n programmes; and this trend of an upward drift 
of applied rates is still within Fiji’s overall bi nding commitments, and reflects Fiji’s need for the 
policy space available to it within its commitments. It  is also worth noting that the upward drift being 
talked about is an increase of 3.4%. An average a pplied rate of 11.3%, is still very low relative to 
countries at the same level of development as Fiji. 
235. In response to the question on rulings and disput es related to customs valuation, we envisage 
that the provisions of the Revised Kyoto Conven tion (RKC) which we are in the process of acceding 
to, will address these issues.  
236. Fiji will review its investment measures to ensure compliance with the Trade Related 
Investment Measures Agreement (TRIMS). However,  we need some flexibilities in terms of using 
various investment measures to provide employment and rural livelihood.  
237. In the area of Intellectual Property Rights, Fiji,  similar to other developing countries, faces a 
number of challenges, in particular, modernizing its  laws to be compliant with the Trade Related 
Intellectual Property Rights Agreement (TRIPS). It al so requires adequate allocation of resources to 
effectively enforce IP laws. Fiji is  in the process of modernizing its  systems which includes a review 
of the laws to enable easier prosecutions of in fringements. We acknowledge with gratitude the US 
Government’s offer for capacity building and technical  assistance in the area of developing IP law 
through the US Patents and Trademarks Office (PTO ). We look forward to working with the US PTO. 
238. As we have set out in our various submi ssions, the Bio-Security Promulgation and its 
regulations will be aligned to the SPS Agreement, keeping in mind our capacity and challenges. This 
should further strengthen the facilitation of trade and improve our border services.  In this regard, Fiji 
will continue to work with the relevant SPS or ganizations, including C odex, IPC and OIE.  
239. I would like to emphasize that Fiji and other small developing countries need capacity to 
participate in standard setting bodies such as the OIE, IPPA and CODEX. At the moment, standards 
are designed mostly by developed countries as most  developing countries are unable to participate in 
standard-setting bodies, constrained by distance and fi nancial limitations. Standa rds thus set are often 
either irrelevant or unreasonably onerous on deve loping countries. Organizations such as the WTO 
and donor members should remedy this situatio n and provide all the necessary assistance to 
disadvantaged countries to create a level playing field. 
240. Fiji, together with other small and vulnerabl e economies, faces the e normous challenge of 
declining export earnings as a result of preference erosion. We need a trade and development solution 
to enable us to participate actively in the global tr ading system on a sustainable basis with the ultimate 
objective of alleviating poverty and raising the livi ng standards of our people. This issue has been 
raised by a number of small and vulnerable countries in the context of the DDA and must be 
addressed.  WT/TPR/M/213 
 Page 35 
 
 
  241. I will now take a few moments to briefly answer  some questions raised on “sectoral policies” 
on Fiji’s trade and economic policies related to the development of Fiji’s key sectors. These are in no 
particular order: 
242. Fish and fisheries-related products have emerge d as one of the most promising industry for 
Fiji in the context of new global trading realities. Before the delisting of Fiji fisheries products from 
the EU market due to SPS compliance, Fiji had made great inroads into the UK fresh/frozen tuna loins 
sector, capturing 19% of that niche market. Fiji was pa rticularly proud of this achievement, especially 
when you consider the distance between Fiji and the United Kingdom.   
243. The government has introduced measures to en courage growth and increase trade in the 
fisheries sector through institutional strengtheni ng of our trade facilitation processes and border 
control agencies. In this context, you will unders tand why Fiji is so con cerned about SPS measures 
that are used as disguised barriers to trade. I encourage our major trading partners to undertake 
collaborative efforts to address our SPS and T echnical Barriers to Trade (TBT) concerns. 
244. Members that spoke in support of Fiji’s Tr ade polices on Wednesday, correctly identified 
tourism as Fiji’s main industry and one of our hi ghest foreign revenue earners for over two decades. 
The slight decline in 2007 could be partly attributed  to the negative and inaccurate travel advisories 
by some countries and should be seen as a minor setback, as demonstrated by the fact that 2008 has 
been a record year for tourist arrivals in F iji. Figures up to November 2008 show a 9.2% increase 
from the corresponding period in 2007, that is, 534, 755 as compared to 489,847.  
245. The Government also reformed and liberalized  this sector, over and above its commitments 
under GATS, and is actively encouraging FDI in th e tourism industry. It is worth noting that 
sightseeing tours, travel agents, tour-guide services ha ve now been opened up to foreign investors.  
246. I had in my opening statement explained how  the Government has taken bold steps in 
liberalizing the telecommunications sector with con sequent success. I am confident that these steps 
and government’s adherence to re gulated liberalization will lead to  increased interest in foreign 
investment in this sector as already demonstrat ed. It will also consolidate Fiji’s position as the 
communication hub and electronic gateway of the South Pacific region. 
247. In the agricultural sector, please allow me to co rrect a misnomer relating to Fiji’s so called 
‘Import Substitution’ policy. Fiji does no t have an ‘Import Substitution’ policy per se  for this sector. 
We are, however, committed to increasing production with the objective of ensuring food security and 
improving rural livelihoods. Fiji does not intend to u se tariffs or export subs idies to achieve these 
objectives. Instead, government provides grants to assist farmers to increase their production. 
248. The comments raised by our Discussant on the refo rm and diversification of the sugar sector 
vis-à-vis  ethanol production, echoed in Brazil’s intervention, are pertinent.  
249. The sugar industry has carried out a feasibilit y study on ethanol production recommending the 
production of ethanol for both domestic  and export markets.  In this regard, the Fiji Sugar Corporation 
is currently negotiating with a Japanese company to commence operations. In addition, government 
has introduced in 2009, 10-year corporate tax holid ays for companies involved in processing not just 
sugar-based, but any other commodities for the producti on of bio-fuels. Brazil’s offer of relevant 
collaboration in the area of biofuel production is therefore much appreciated. We look forward to working with Brazil. 
250. In conclusion, I have addressed the issues raised by Members and our Discussant in the first 
session on Wednesday within the broad themes they fe ll within. My statement today, and indeed on 
Wednesday, is intended to stimulate discussions. We have also prepared a document providing WT/TPR/M/213 
Page 36  
 
  responses to new questions posed on Wednesday, as well as the written questions received from 
Indonesia. I urge Members to examine this doc ument which will be circulated to address any 
outstanding queries they may have after the end of today’s TPR session. 
251. With these few words, may I on behalf of my  government once again convey our appreciation 
for the interest showed in F iji’s TPR.  This second TPR has helped us to consolidate our 
understandings of the Geneva process, and in turn we  hope that the Membership has gained a greater 
understanding of our trade policies and practices. We  look forward to the assistance, cooperation and 
understanding of WTO and its Membership.   
DISCUSSANT 
252. I was particularly impressed by two aspects of this Trade Policy Review exercise. 
253. First, there was the candour and frankness which F iji displayed throughout this review; in its 
Government report, in Minister Sayed-Khaiyum’s opening statement, and in his responses to the 
questions and comments that arose in the subsequent  interventions.  There was never any attempt to 
avoid difficult or controversial issues, and I think that Fiji deserves our commendation for its 
openness and the way in which it approached this review. 
254. Second, the interest which Members have in Fiji was made very clear.  A large number of 
delegations – some 20 by my count – took part in  the discussions, and the genuinely constructive 
nature of their comments was noteworthy.  They obviously understood and sympathised with Fiji’s 
problems, and sought to be helpful in  their positive comments and recommendations. 
255. A wide range of important issues was raised in the discussions: many Members shared 
information on their trade and investment relations with Fiji; some identified problems or 
impediments which their exporters  to Fiji encountered, and they suggested ways in which such 
difficulties could be overcome;  problems facing Fiji in  relation to market access, preference erosion, 
international competitiveness, SPS, NTB’s, and capac ity constraints, among others, were mentioned; 
and recommendations were made concerning ways  to improve regulatory provisions, revenue 
collection, and incentives for trade, exports, and i nvestment.  There was praise and encouragement for 
the restructuring and reform programmes being under taken by Fiji, and suggestions as to how these 
could be made more effective. 
256. Members also acknowledged Fiji’s new orie ntation toward export-led growth and 
development, and its continued co mmitment to trade liberalization, undertaken unilaterally as well as 
within the bilateral, regi onal and multilateral contexts. 
257. The role of the WTO, and the anticipated realisation of the development dimension of the 
DDA, in Fiji’s attempts to use tr ade effectively as a tool for economic growth, poverty alleviation and 
sustainable development was another important topic. 
258. Members also urged that the necessary assistan ce be provided to Fiji, including through the 
Aid for Trade Initiative, to assist it in complying with its WTO commitments, and to address supply-
side constraints.  In this context, I want to make  special mention to Fiji’s expressed desire to establish 
a permanent mission in Geneva.  Members will be aw are of the limitations and disadvantages of not 
having a physical presence here.  The establishment of an office in Geneva would undoubtedly enable 
Fiji to participate on a continuing basis in th e day-to-day activities of the WTO, and would 
considerably enhance its fuller pa rticipation in the on-going negotia tions related to the DDA.   I 
would, therefore, strongly encourage those Members in  a position to do so, to make an effort to help 
Fiji attain this objective.  WT/TPR/M/213 
 Page 37 
 
 
  259. This review and the discussions took place  against the background of the current global 
financial and economic crises, and the uncertainti es and dangers which now threaten Fiji and other 
developing countries. 
260. I am convinced that this TPR has been a most  valuable learning experience for both sides.  
Members should now have a deeper appreciation of F iji’s situation, its policies and aspirations.  For 
Fiji, there is much to consider, and I hope that it will be able to benefit from some of the ideas and 
recommendations that emerged. 
EUROPEAN COMMUNITIES 
 
261. The EC thanks Fiji for providing feedback in your written questions to some of the issues 
notably concerning our EPA that we highlighted in the statement on the first day of the Review as 
well as in our written questions, and we are confident th at together with the delegation of Fiji and the 
Secretariat we can find a way to reflect this issues in the Report in a more balanced way. 
262. Also the EC highly appreciates the acknowledgement by Fiji on the first day statement and 
also in its written responses that the technical assi stance and aid by the EC  has been useful and 
appropriate notably in the area of SPS measures.  And we are hopeful that a mission to Fiji by the 
Food and Veterinary Office from DG SANKO early this June to evaluate the control systems 
governing the production of fishery products intended for export to the EU will be a successful one 
and will help Fiji to fulfil its potential as importa nt fish exporter.  And as already mentioned on the 
first day we will continue to work closely to achieve this aim.  In closing I would like to say that the 
EC has greatly appreciated this opportunity to pa rticipate in the TPR of Fiji which has been an 
extremely useful and informative exercise in our vi ew and it will hopefully also give Fiji valuable 
feedback on its policies and real help to continue its efforts towards future development and reforms. 
SECRETARIAT 
263. I would like to inform delegations that because of resource constraints in the Secretariat and 
specifically in the TPR Division, we have decide d to streamline and simplify the way in which we 
produce the Records of the TPR Reviews.  We shall pay attention to making sure that there is no 
deterioration in the completeness or the accuracy of the Minutes, on the contrary we hope that you will see an improvement in that respect.  I would li ke to seek the assistance of delegations by asking 
you to send us electronic copies of your statements af ter you have delivered them so that they reflect 
any changes that you made when making yo ur statements in the TPR meetings.  
 WT/TPR/M/213 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
264. This second Trade Policy Review of Fiji has pr ovided us with a much better understanding of 
Fiji's trade and trade-related policies and of the ch allenges it faces.  Our dialogue has been thorough 
and comprehensive, stimulated by the full and open engagement of the high-le vel Fijian delegation, as 
well as the insightful comments made by the discu ssant, and the thoughtful interventions by many 
Members.  Fiji's response to the large number of questions is very much appreciated. 
265. Members commended Fiji for its efforts to impr ove its customs procedures and to liberalize 
its foreign investment regime as well as for other measures taken to create a business-friendly 
environment, notably the establishment of the Financial Intelligence Unit and the creation of an independent regulatory authority in  the telecommunications sector.  They welcomed the Government's 
commitment to the continuation of these and othe r trade and trade-related reforms as well as to a 
return to Parliamentary democracy.  
266. Members expressed concern, however, about the upward trend in the average applied MFN 
tariff rate, contrary to the Government's stated  intention of reducing tariffs, one of the main 
instrument's of Fiji's trade policy.  They were concer ned about the fact that only half of all tariff lines 
are bound and the large gap between bound and applied MFN tariff rates, both of which impart a 
degree of unpredictability to the tariff. Members ur ged Fiji to make improvements in these and other 
areas (including its GATS commitments, for example) so as to render its trade regime more transparent and predictable.  Although, Members not ed the absence of notifications in several areas, 
they took note of Fiji's commitment to provide the n ecessary notifications before the end of this year.  
At the same time, some Members urged Fiji to en sure that its regional trade agreements were 
complementary to the multilateral trading system. 
267. Certain Members sought clarification on some aspects of Fiji's SPS practices; at the same 
time, reference was made to non-tariff barriers fa ced by Fiji's products (including fish) in export 
markets.  Some Members encouraged Fiji to strengt hen further its protection of intellectual property 
rights and expressed interest in rela ted developments in this regard. 
268. Certain Members acknowledged the common pr oblems faced by small and vulnerable 
economies, such as their relatively heavy reliance on tariffs as a source of ta x revenue and the erosion 
of their trade preferences, including tariffs.  Members emphasized the importance of trade as a tool of development and underlined the importance of Aid for Trade and other technical cooperation 
initiatives.  Some Members felt that Fiji does not benefit fully from its WTO Membership as its own 
institutional capacity constraints (including lack of representation in Geneva) do not always allow it to 
identify and/or exploit trade opportunities. Many Members underlined their commitment to 
continuing to provide trade-related assistance to Fiji. 
269. To conclude, I would again like to thank Fiji' s delegation for enabling us to understand better 
its trade and trade-related policies as well as its tec hnical assistance needs. I would also like to thank 
the Discussant, for his insightful observations and questions, and Members for contributing to what 
has been a very fruitful two days of discussions. We look forward to receiving Fiji's responses to the 
remaining questions within the next month. 
__________