RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/213 
18 February 2009  
 
(09-0738) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
FIJI 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Fiji is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
 session of the meeting of the Trade Policy Review Body on Fiji. Fiji WT/TPR/G/213 
 Page 3 
 
 
CONTENTS 
 
    P a g e  
I. INTRODUCTION 5 
II. THE MACRO-ECONOMIC AN D TRADE ENVIRONMENT 6 
 (1) E CONOMIC GROWTH  6 
 (2) B ALANCE OF PAYMENTS  7 
 (3) M ONETARY POLICY AND INTEREST RATES  7 
 (4) B ALANCE OF TRADE  7 
 (5) E XCHANGE RATES  8 
 (6) N ET INTERNATIONAL RESERVES  8 
 (7) F ISCAL DEFICIT  9 
 (8) I NFLATION  9 
 (9) C HALLENGES TO FIJI’S ECONOMIC GROWTH  9 
 (10) O UTLOOK  9 
III. TRADE POLICY AND PE RFORMANCE BY SECTOR 10 
 (1) A GRICULTURE  10 
 (i) Sugar 10 
 (ii) Fisheries 11 
 (iii) Forestry 11  (iv) Mining and Quarrying 11 
 (2) T
HE MANUFACTURING SECTOR  11 
 (3) T HE SERVICES SECTOR  12 
 (i) Tourism 12 
 (ii) The Financial Sector 13 
 (iii) Information and Communication Technology (ICT) 14  (iv) Transport 15 
 (v) Energy 16 
IV. TRADE POLICIES AND PRACTICES BY MEASURE 17 
 (1) T
RADE POLICY MEASURES AFFECTING IMPORTS  17 
 (i) Tariffs 17  (ii) Internal Taxes 18 
 (iii) Trade Facilitation 18 
 (2) M
EASURES DIRECTLY AFFECTING EXPORTS  19 
 (3) T RADE -RELATED MEASURES AFFECTING PRODUCTION AND TRADE  20 
 (i) Taxation 20 
 (ii) Foreign Investment 20  (iii) Competition Law 21 
 (iv) Intellectual Property Rights 22 
 (v) Government Procurement 22 
 WT/TPR/G/213 Trade Policy Review 
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    P a g e  
V. TRADE AGREEMENTS 22 
 (1) T HE WORLD TRADE ORGANISATION  22 
 (2) R EGIONAL TRADE AGREEMENTS  23 
 (i) Melanesian Spearhead Gr oup Trade Agreement (MSG) 23 
 (ii) Pacific Island Countr ies Trade Agreement (PICTA) 24 
 (iii) Economic Partnership Agreement (EPA) 24 
 (iv) SPARTECA 25  (v) The Pacific Agreement on Closer Economic Relations (PACER) 25 
 (3) B
ILATERAL TRADE AGREEMENTS  25 
 (4) I NVESTMENT AND TAXATION AGREEMENTS  26 
VI. AID FOR TRADE 26 
VII. CONCLUSION  26 
 
 
 Fiji WT/TPR/G/213 
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 I. INTRODUCTION 
1. Fiji’s last Trade Policy Review was conducted in 1997, and since then, a lot of developments 
have taken place locally and in the global tradi ng system. Fiji has undertaken major structural and 
economic reforms to promote trade and economic  growth. However, as a small and vulnerable 
economy (SVE), Fiji has been severely affected by major changes in the global trading system. Some 
of the sectors that have been affected include Fiji ’s major export products in the textiles and sugar 
industry. Sugar and clothing accounted for about 52.3% (sugar 26.8%, clothing 25.5%) of total 
merchandise exports in 2002 but this had declined to 25.9% (sugar 14.2%, clothing 11.7%) in 2007. 
These two sectors have been affected  mainly by the expiry of the Agreement on Textiles and Clothing 
in 2005 and the reforms in the sugar sector in Eur ope.  Furthermore, in addition to the non-tariff 
barriers that are affecting the fisheries sector, Fiji is  also concerned that this sector will also be 
affected by preference erosion as a result of trad e liberalisation under the auspices of the World Trade 
Organisation (WTO).  From Fiji’s point of view, tr ade preferences play a vital role in facilitating 
exports of small island economies an d in improving the livelihoods of people. Therefore, there is a 
need for both a trade and a development solution to the problems of preference erosion.   
2. Fiji is fully aware that the vehicle of trade lib eralisation will continue to move forward as 
evidenced by the spaghetti bowl of bilateral and regi onal trade agreements that have been concluded, 
as well as through liberalisation at the WTO, and that  preference erosion is inevitable. In order to 
cushion the economy from the deleterious effects of  trade liberalisation, Fiji is currently making 
economic and structural reforms to develop expor t competitiveness to be able to survive in a 
preference free world and to be fully integrated into the global economy. These reforms are aimed at 
stimulating exports as the engine of economic grow th and poverty alleviation and are being taken in 
the context of the Fiji 20 year Development Plan , the 2006 National Export Strategy (NES) and most 
recently, the Sustainable Economic and Empowerme nt Development Strate gy (SEEDS) 2008-2010. 
Fiji is also formulating the Peoples Charter for Change, Peace and Progress to supplement the Constitution, with the ultimate objective of paving way for democracy and creating conditions which 
are conducive for sustainable export-led economi c growth and development. The 2009 budget has 
already incorporated recommendations from the Charter and from the other stakeholders.  
3. However, in order to implement the aboveme ntioned economic and structural reforms to 
enable Fiji to diversify its economy and to ease th e pain of preference erosion, Fiji will require 
assistance from the WTO and the international community in general. Fiji believes that trade 
liberalisation should not be an end in itself, but  a means to promote economic growth and poverty 
alleviation. Trade liberalisation alone is not enough. Some of the measures that are necessary to ensure that small economies like Fiji benefit from trade include development-friendly trade policy 
measures from the WTO and Aid for Trade from the international community. The trade solutions 
that Fiji and other small countries have been seeking in the Doha Development Agenda (DDA) 
negotiations include flexibilities on affected product s through less than formula cuts and longer 
transitional periods. The development solutions incl ude effective and time sensitive Aid for Trade to 
enable Fiji to fully utilise the opportunities offered by tr ade liberalisation. It is in this context and in 
pursuance of the abovementioned objectives that F iji has been participating actively in the DDA 
negotiations through its Brussels-based Office and the Pacific Islands Forum Secretariat (PIFS) 
Geneva-based Office.   
4. Fiji would like the WTO to put more emphasis on the needs of SVEs, especially small island 
countries that are vulnerable to natural and global shocks. Recently, Fiji has been affected by the 
crisis in the oil sector and the increases in the pr ice of food commodities. Furthermore, Fiji has also 
been and is likely to be further (indirectly) aff ected by the turmoil in the global financial sector, WT/TPR/G/213 Trade Policy Review 
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 especially in terms of low demand of its exports , low foreign investment s, remittances, visitor 
arrivals, access to credit and exchange rate.  Howe ver, despite the abovementioned challenges, Fiji is 
fully committed to implementing its WTO obligations. To  this end, Fiji will continue to work with all 
the members of the WTO to minimise the negative e ffects of trade liberalisation and ensure that the 
benefits of trade liberalisation trickle down to the smallest members of the Organisation. 
5. Fiji has also been actively participating in re gional integration arrangements and is currently 
negotiating various regional trade agreements. From  Fiji’s perspective, these regional arrangements 
are important stepping stones towards fuller particip ation and integration into the world economy. To 
this end, Fiji has intensified its efforts to negotiate  regional trade arrangements in order to deepen its 
trade with other Pacific nations, consolidate its tr aditional market shares in the US, Europe, Australia 
and New Zealand, diversify its ma rket and improve its competitiveness. Fiji has already initialled the 
Interim Economic Partnership Agre ement (IEPA) with the European Union (EU) and has started 
informal consultations with Australia and New Zeal and in the context of regional negotiations with 
other Forum Island Countries.1  In formulating, negotiating and implementing its trade policies, Fiji 
values consultation with all the ministries, the privat e sector and civil society to ensure that their 
views are taken into account in trade negotiations. 
II. THE MACRO-ECONOMIC AND TRADE ENVIRONMENT 
(1) ECONOMIC GROWTH  
6. Fiji has a narrow economic base which relies he avily on tourism, suga r and garment exports. 
Economic growth during the period under review has been volatile, averaging less than 1% annually 
between 2003 and 2008. In 2000, GDP contracted by about -1.6% but grew to a peak of 5.5% in 2004 
before declining to 0.6% in 2005 mainly due to th e expiry of the Agreement on Textiles and Clothing. 
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 was also affected by global challenges and the 
major export industries such as textiles, sugar and tourism were severely affected. However, the 
economy is projected to grow by 1.2% in 2008 and by 2.4% in 2009 as shown in Table II.I below.   
-8.0-6.0-4.0-2.00.02.04.06.08.0
Series1 -1.6 1.9 3.2 0.9 5.5 0.6 3.4 -6.6 1.2 2.4 1.9 1.5FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11Percentage GrowthTable II.1:   Gross Domestic Product
Sourc e:  Fiji Islands Bureau of Statistics and Macroeconomic Committee.Real GDP Growth
 
                                                      
1 Fiji has initialed but as of 13 Decem ber 2008, it had not yet signed the IEPA. Fiji WT/TPR/G/213 
 Page 7 
 
 
 (2) BALANCE OF PAYMENTS  
7. The overall balance of payments position has improved from a $57.5 million surplus in 2006 
to a surplus of $93.1 million in 2007.  This was ma inly as a result of large unaccounted inflows and a 
marginal surplus in the capital account balance. In  2006, Fiji’s current account balance widened to -
22.6% of GDP mainly as a result of the increasing tr ade deficit and a decline in receipts from tourism 
and remittances. The capital account r ecorded a surplus of 17.2% of GDP in 2006 mainly because of a 
temporary surge in net foreign inward direct and portfolio investments.  In 2007, the current account 
deficit was -17.3% of GDP, but in 2008, it had wor sened to -21.0%.  However, if unaccounted inflows 
are included, the current account deficit will be very low (6.3% of GDP in 2008 as opposed to -
21.0%).   
(3) MONETARY POLICY AND INTEREST RATES  
8. The Reserve Bank of Fiji is responsible for c onducting monetary policy and its main focus is 
on safeguarding foreign reserves and keeping infl ation low. Some limitations on credit were 
introduced in December 2006 on individual commerc ial bank loans in order to dampen credit and 
consumption. This credit policy will remain in place in 2009, however, special approvals can be 
granted for commercial banks to lend above the cr edit ceiling for investment-related projects. Since 
there is a high level of liquidity in the financial sy stem, interest rates remain relatively low. Towards 
the end of September 2008, the weighted average lending rate was 8.16%, while the weighted average interest rates on time and savings deposit s were 2.29% and 0.64% respectively. 
(4) B
ALANCE OF TRADE  
9. In 2003, merchandise exports contributed about 28.9% to GDP. This declined to 21.7% in 
2007. The main merchandise exports are sugar, minera l water, fish (mainly fresh fish), clothing and 
kava. Sugar exports accounted for about 26.8% in 2003 but fell to 14.2% in 2007, clothing exports 
were 25.5% in 2002 but declined to 14.2% in 200 5 and to 11.7% in 2007. However, fish exports 
increased from 9% in 2002 to 12.2% in 2007 and those of  mineral water also increased form 3.3% in 
2002 to 12.7% in 2007.  
10. Since 2003, exports have become more divers ified geographically. In 2003, exports to 
Australia accounted for about 20.1% of total exports  but declined to 13.3% in 2007, exports to the 
United States accounted for 18.0% in 2003 but declined to 14.7% in 2007 and exports to the EU declined slightly from 16.4% in 2003  to 15.5% in 2007. Fiji’s exports to the US and Australia accounted for about 38.1% in 2003 but declined to  28% in 2007 mainly because of loss of preferences 
and competition from other countries. Singapore is no w a major export market for Fiji and exports to 
Singapore increased from 0.1% in 2003 to 18.6% in  2007.  In 2008, exports (excluding aircraft) are 
forecast to grow by 17.9 %, but only by 0.8% in 2009 due  to the effects of a global recession and the 
impact of the EU sugar reforms. 
11. Imports of primary products increased from 31.7% in 2003 to 50.0% in 2007, mainly as a 
result of rising fuel imports, which increased from 12.2% to 33.2% during the same period.  In 2003, 
about 84.5% of imports we re sourced from Asia and Pacific economies and this figure increased to 
91.7% in 2007. Singapore was the main source of  imports in 2007, accounting for about 34.2% of 
imports compared to 6.4% in 2003.  Imports fro m the United States declined from 9.2% in 2003 to 
3.2% in 2007; those from Australia declined fro m 37.5% in 2003 to 22.8% in 2007 and those from 
New Zealand fell from 18.8% in 2003 to 17.7% in 2 007.  Total imports (excluding aircraft) declined WT/TPR/G/213 Trade Policy Review 
Page 8 
 
 
 by 7.2% in 2007 after growing by 13.7% in 2006 but are expected to grow by 21.8% and by 3.3% in 
2008 and 2009 respectively. 
12. For the past eight years, imports have increa sed sharply relative to exports and this has 
severely threatened Fiji’s balance of payments and foreign reserves position. Fiji’s trade balance 
(merchandise) has always been negative and this  has widened during the period under review. In 
2000, imports were valued at $1.8 billion compared to exports of about $1. 2 billion. However, in 
2007, imports were valued at $2.9 billion, while exports were still around $1.2 billion. 
13. Trade in services contributed about 68.6% to GDP  in 2001 and this increased to about 72.2% 
in 2006. Fiji has always maintained  a surplus on trade in services fo r many years. The total services 
exports for 2007 were valued at  F$936.9 million (down by 30% from  2006). The main export services 
were tourism (57%), transportation (36%), othe r business services (4%), government services (3%) 
and communications (2%). The total services importe d in 2007 were valued at F$634.7 million.  
(5) EXCHANGE RATES  
14. The Fiji dollar is pegged to a basket of curre ncies (the US dollar, British pound, Australian 
dollar, New Zealand dollar, Japanese yen and euro ). During the review period, Fiji’s nominal 
effective exchange rate (NEER) has remained reasona bly stable but it slightly depreciated against the 
US dollar and the Japanese yen, especially in the past three years, and appreciated against the 
Australian and the New Zealand dollar.  The increa se in the real effective exchange rate (REER) 
largely reflects higher domestic inflation outcome s, compared to Fiji’s major trading partners. 
Table II.2 below shows Fiji’s exchange rate performance since 2001. 
Table II.2 
Exchange rates 
Middle market rate 
per F$ 2001 2002 2003 2004 2005 2006 2007 2008 
Australian dollar 0.8467 0.8575 0.7752 0.7799 0.7827 0.7605 0.7351 0.8197 
Japanese yen  56.79 57.42 62.18 62.61 67.53 71.45 72.50 55.24 
New Zealand dollar 1.0416 0.9218 0.8876 0.8465 0.8409 0.8521 0.8315 0.9447 
US dollar 0.4331 0.4843 0.5807 0.6079 0.5731 0.6009 0.6447 0.5600 
Euro 0.4901 0.4621 0.4627 0.4458 0.4837 0.4570 0.4379 0.4329 
Nominal effective 101.10 100.99 101.77 101.83 101.50 101.57 101.64 103.05 
Real effective 97.55 96.75 99.67 100.43 100.31 105.87 108.00 106.23(p) 
Source:  Reserve Bank of Fiji November 2008. 
(6) NET INTERNATIONAL RESERVES  
15. In 2007, foreign reserves remained at adequa te levels with year-end foreign reserves at 
approximately $958.7 million, sufficient to cover 4. 4 months of import payments of goods. However, 
the widening trade deficit continues to be a con cern to Fiji’s balance of payments and foreign 
reserves. Towards the end of October 2008, fo reign reserves were valued at $860.8 million 
(provisional), sufficient to cover 3.2 months of im ports of goods. The foreign exchange reserves for 
2003-2007 are shown in Table II.3 below. 
 Fiji WT/TPR/G/213 
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 Table II.3 
Foreign exchange reserves, 2003-2007 
Foreign exchange reserves 2003 2004 2005 2006 2007 
Gross Foreign Exchange Reserves ($million) 969.5 1.096.9 908.2 865.7 958.7 
Months of Imports of goods 5.8 5.9 4.4 3.7 4.4 
Source: Reserve Bank of Fiji November 2008. 
 
(7) FISCAL DEFICIT  
16. From 2000-2006, the average annual net fiscal de ficit was an unsustainable 4.43% and debt 
was unaffordably high.  The Government’s strategy to stabilize and consolidate the fiscal position has 
been highly successful. In 2006, the Government’s de bt level stood at 52.2% of GDP and was reduced 
to 50.3% in 2007 through tight financial restraints an d is expected to be about 47.9% in 2008. The net 
deficit for 2007 was $96.2 million (1.8% of GDP) and the revised deficit for 2008 is forecast to be 
$92.0 million (1.5% of GDP). For 2009, the Government will increase the deficit to 3% 
($190.4 million) to support productive expenditure, especially for infrastructure rehabilitation and 
development.   
(8) INFLATION  
17. In 2006, the annual inflation was 3.1% and it in creased to 4.3% in 2007.  The inflation rate 
reached a 20-year high of 9.8% in September 2008 ma inly as a result of higher food and oil prices but 
in October, it eased to 8.5% due to comparatively lower domestic oil prices. The impact of the sudden 
drop in oil has not yet passed through to domestic prices. The 2008 year-end inflation forecast remain at 7.5%. 
(9) C
HALLENGES TO FIJI’S ECONOMIC GROWTH  
18. Fiji’s economy has been severel y affected by preference erosion in the textiles and sugar 
sector, the rise in oil and food prices, the global recession and this will have an adverse impact on 
economic growth, unemployment and poverty reducti on. Whilst Fiji’s trade policies are relatively 
liberal and will continue to be formulated towa rds trade liberalisation objectives, the Fijian economy 
faces major setbacks with a lack of development in areas which facilitate trade such as better road 
access to link potentially vibrant rural farmi ng communities to supply both domestic and export 
demand; reliable shipping services to outlying isla nds; trained border contro l personnel and related 
systems to minimise turnaround times at the ports of entry and a revised set of trade and trade related 
legislation to reflect the current demands of  th e global trading environment; to name but a few. 
Further, tariff escalation by developed countries on so me of Fiji’s agricultural products does not make 
it economically feasible for our producers to provide value-adding processes and venture out into the manufacturing realm. 
(10) O
UTLOOK  
19. The Fijian economy faces numerous macro-economic and structural challenges.  In order to 
maintain macro-economic stability, Fiji has adopted  measures to ensure fiscal discipline and a 
restrictive monetary policy is being pursued to cu rb inflation and address external imbalances, the 
source of foreign reserve pressures. The Government is also restructuring the economy to improve 
productivity and international competitiveness in a number of sectors including sugar, textiles and 
tourism. Fiji is committed 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. WT/TPR/G/213 Trade Policy Review 
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 However, the economic recovery is likely to be slow and will also depend on international 
developments, such as world growth and oil prices.   The medium-term macro-economic targets are to 
achieve an annual real economic growth of 5%, re duce inflation to under 3% over five years, boost 
foreign reserves to 4-5 months of import cove r, achieve a balanced budget by 2012, lower 
Government debt to sustainable levels of 45% of GDP by 2011 and  raise foreign investment to more 
than  25% of GDP. 
III. TRADE POLICY AND PERFORMANCE BY SECTOR 
(1) AGRICULTURE  
20. In 2001, agriculture contributed about 10.9% to GDP but this declined to 9.8% in 2006.  
Sugar cane growing contributed about 3.9% to GDP in 2003 but this declined to 3.0% in 2006.  The 
Government adopted an Import Substitution Plan in 2008 in order to promote food security and exports. The key agricultural exports include suga r, fruits and vegetables a nd kava. Very generous 
incentives were introduced during the 2009 budget to promote investments in agriculture. The Government has also established the Committee on Better Utilization of Land as a consultative and 
advisory forum aimed at reducing the amount of idle agricultural land and to improve both the 
landowners and tenants' welfare.  
(i) Sugar 
21. The contribution of sugar cane to GDP was $143.1 million dollars in 1999 but declined to 
$94.4 million in 2007. Manufactured sugar cont ributed about $70.1 million to GDP in 1999 but 
dropped to $46.8 million in 2007. Exports of s ugar declined from $263.2 million in 1999 to 
$185 million in 2007. Sugar farming accounted for ove r 30% of agricultural activities providing about 
40,000 jobs and supporting about 200,000 people directly or indirectly. However, sugar cane 
production has fallen substantially a nd exports have declined from a peak of 27% in 2002 to 14% of 
total exports in 2007. 
22. More than half of Fiji’s sugar is exported to  the EU and a relatively small amount to the 
United States under preferential quota arrangements and at well above world prices. However, in 
2005, the EU decided to cut the price of sugar progr essively by 36% and exports of sugar are expected 
to fall drastically in 2009.  The phasing out of th e EU preferential treatment is forcing many cane 
farmers to diversify into alternative cash crops. In preparation for the phasing out of the EU sugar 
preferences, Fiji has introduced reforms intende d to address the declining production through 
improving efficiency in growing, processing a nd transportation, and the upgrading of mills.
2 The 
Government is restructuring the sugar industry into  a commercially viable, efficient and sustainable 
industry and a Sugar Research Institute was estab lished in 2005 to promote technical advancement, 
efficiency and productivity in the sugar industry.  The Government is also promoting exports of 
ethanol and the generation of electricity from baggas se for sale to the national grid. The EU has also 
pledged to support the reform of the sugar industry if certain conditions are met and the Government 
is working with all the stakeholders to comply with these conditions. 
                                                      
2 Fiji launched the Accelerated Cane Replanting Programme in 2007 and the target is to re-plant sugar 
crops on 70% of land over five years and to raise sugar cane production from 3 million to 4.7 million tonnes 
annually by 2009/10.   Fiji WT/TPR/G/213 
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 (ii) Fisheries 
23. In 2007, the fisheries sector contributed about  2.5% to GDP and accounted for about 12% of 
total exports, which mainly consisted of fr esh tuna exports to Japan’s sashimi market.3  Canned tuna 
production has declined and the major cannery in Fiji  has been exporting mainly frozen albacore loins 
to the United States for canning. The sector is also facing preference erosion and competition, mainly 
from Asia.  The fisheries sector has also been severely affected by the ban that was imposed by the 
EU through a de-listing published in the European Official Journal on 22 May 2008 on the basis that 
the Fiji Competent Authority does not  meet the EU health standards. Fiji is now in the process of 
upgrading its Competent Authority in order to resume  its exports to the EU. The Government plans to 
increase the fisheries GDP share to at least 3% and fish exports by 15-20% by 2011. 
24. In order to create a level playing field for local and foreign owned fishing vessels, the 
Government introduced concessions for the fishing industry during the 2009 Budget. Some of these 
concessions include a reduction in fiscal duty on fuel from 8 cents to 2 cents, duties on specialized 
fishing gear and equipment; and fish baits have b een reduced from 3% to 0% and those on specialized 
fishing vessels have been reduced from 10% to 0%.  The Government will also introduce a 3% export 
duty on exports of unprocessed fish from 1 January 2009  in order to encourage local value addition. 
(iii) Forestry 
25. The forestry industry contributes about 1% to  GDP and exports account for about 5-6% of 
total exports. A new forestry policy which aims to  expand production and prom ote sustainable forest 
management was adopted in 2007. The Government plans to expand pine plantations on available 
grassland areas and has provided financial support in 2008 largely to help establish a new 400 hectare 
plantation.  Mahogany harvesting commenced in 2003 and production has increased gradually. The 
Government recently decided to transfer mahogany plantations to the land owners and also to 
liberalise the industry to allow other private comp anies to harvest, process and market mahogany.   
(iv) Mining and Quarrying 
26. Mining and quarrying activities have declined in  importance during the period under review.   
Exports of gold decreased from a peak of 9.3% in  2004 to 0.3% in 2007. This was mainly as a result 
of the closure of Emperor Mines Ltd in Dece mber 2006.  However, the mine re-opened in 
November 2007 under a new ownership after th e Government had granted new concessions.4  T h e  
Government goals are to double mineral explorati on expenditure to F$12 m illion and to raise annual 
gold exports by over 30% or F$100 million by 2011. Fiji promotes investment in the mining sector 
and allows wholly-owned foreign companies.  
(2) THE MANUFACTURING SECTOR  
27. The main manufacturing activities in Fiji include  sugar, beverage and tobacco, clothing and 
textiles, other food and non-food industries. The manufacturing sector’s contribution to GDP has been 
                                                      
3 Canned fish accounted for a very small portion and has been in declining. 
4 These include exempting gold from th e export tax (3%) and reducing the royalty rate from 6% to 3% 
for five years, a two-year exemption on import duties on automotive diesel oil or industrial diesel oil used at the mine, a three-year exemption from fiscal duty on importe d plant, equipment, machinery and motor vehicles for 
operating the mine, and eligibility to exempt withholding tax on overseas loan interest payments, consultants' 
fees and dividends.    WT/TPR/G/213 Trade Policy Review 
Page 12 
 
 
 fluctuating over the period under review and has declined slightly from 15.6% in 2001 to 14.1% in 
2006. Its contribution to paid employment in 2006 was about 22% of the total workforce.  
28. The clothing industry employs about 14,000 workers.  Exports of clothing declined from 
25.5% in 2002 to 14% in 2005 and then to 11.7% in 2007. This was mainly as a result of loss of 
preferential tariff margins into the US, Australian and New Zealand markets after the expiry of the 
Agreement on Textiles and Clothing in 2005 and in creased international competition from Asia and 
some African countries that have preferential access into the US.5  Access into the Australian and 
New Zealand market is also being hampered by st ringent rules of origin under the South Pacific 
Regional Trade and Economic Coope ration Agreement (SPARTECA). 
29. The GDP for beverages and tobacco increased from 2.1% in 2001 to 4.7% in 2006. This was 
mainly as a result of the expansion in bottled mine ral water production and exports of Fiji mineral 
water have increased rapidly from 3.3% in 2002 to 12.7% in 2007. The Government's goal is to raise 
exports of mineral water from F$80 million to F$100 million by 2011 a nd this is being done through a 
range of incentives that are being offered and which include the relevant policy measures contained in 
Fiji’s National Export Strategy.  
30. The Government is involved in processing rice and food and some of the products that are 
manufactured including bottled, canned and frozen lo cal agricultural products. The exports of sweet 
biscuits also increased from 0.08% in 2002 to 2.4% in 2007.   
31. The key objectives of the Government are to diversify and expand the manufacturing sector 
by developing competitive, high value-added industr ies, including divesting public enterprises and 
reviewing tariffs annually to promote competitivene ss. Fiji provides a wide range of incentives which 
include tax incentives (e.g. income tax and ot her tax and duty concessions) and non-tax incentives 
(e.g. concessionary credit) to encourage investment and exports in the manufacturing sector.   
(3) THE SERVICES SECTOR  
32. Fiji’s economy is essentially a services economy with trade in services contributing about 
68.6% of GDP in 2001 (70% in 1996). This increased  to 72.2% in 2006 and accounted for about three 
quarters of paid employment.6  The main services exports are tourism and air transportation. 
(i) Tourism 
33. The tourism industry is the largest contributor  to economic growth, investment and foreign 
exchange earnings. It contributes about 15% to GDP (20% in 1996) and about 50,000 people are 
employed directly or indirectly in this sector. The main markets for tourism in 2006 were Australia 
(36%), New Zealand (20%), the United States (12%) and the United Kingdom (9%).  However, the 
industry contracted by about 7.5% in 2007 becau se of the December 2006 political developments; 
with visitors numbers and hotel turnover  falling by 8.3% and 6.6% respectively.7  The situation is 
                                                      
5 The competition from China is likely to intensify once the United States lifts safeguard measures 
imposed on certain Chinese exports as intended from 2009. New Zealand has also singed a free trade agreement 
with China and this will also affect exports from Fiji. 
6 The sector is dominated by soci al and community services (18.0% of GDP in 2006), transport and 
allied services (11.8%), wholesale and retail trade (11.3% ), hotels and restaurants (8.7%), finance (5.3%) and 
telecommunications (3.9%). 
7 Tourism earnings fell from F$741.7 million in 2006 to $685.6 million in 2007. Fiji WT/TPR/G/213 
 Page 13 
 
 
 expected to improve in 2008 and 2009, and visitor a rrivals are expected to grow by 5.9% and 5.0% 
respectively. Tourism earnings are expected to surpass the $1.0 billion target by 2011.  
34. In May 2007, Cabinet endorsed the Tourism Development Plan (2007-16) which provides a 
comprehensive guide for developing the tourism i ndustry. The Fiji Tourism Development Action Plan 
2007-09 and the Tourism Regional Strategies were also adopted in 2007.  The Plan aims to achieve a 
target of 1.1 million visitors or earni ngs valued at $1.2 billion by 2016.   
35. Existing customs incentives for tourism8 will continue to apply and the Government has 
announced a new tourism incentive package with effect from 2009 . The package include a 55% 
investment allowance on total capita l expenditure, a 10 year tax holiday  for capital investment not less 
than $7 million and import duty exemption on all capital goods not available in Fiji that are utilized to 
carry out the investment. Furthermore, any hotel  development in the Tax Free Region (TFR) that 
entails 25% equity by indigenous Fijian land owners  will qualify for an additional 7 year tax holiday 
on top of the 13 years given under the TFR.   
(ii) The Financial Sector 
36. Fiji’s financial system is sound and stable and th is was also confirmed by the assessment that 
was done by the International Monetary Fund/World  Bank Financial Sector Assessment Program in 
2006. There is a high level of capitalization, adequate  liquidity, growth in lending albeit at reduced 
levels, adequate solvency surplus for the insurance companies and satisfactory profits in the financial 
sector. The Reserve Bank supervises all licensed fina ncial institutions to saf eguard the financial 
system and align it with international practices and st andards. Fiji’s financial sector is well regulated 
with the view towards progressive liberalisation.  
37. Some of the major reforms that have taken place in the financial sector during the period 
under review include: 
 - the enactment of Corporate Governance  laws and the Corporate Governance Policy 
Framework (2003), the introduction of liquidi ty risk management requirements for 
banks, the minimum requirements on discl osure, large credit exposures and local 
capital in 20059;  
 - the strengthening of  regulatory superv ision and development of guidelines in line 
with the Basle supervisory guidelines and th e Core Principles of the International 
Association of Insurance Supervisors; 
 - the establishment of the Financial Intellig ence Unit (FIU), which is responsible for 
formulating, implementing and enforcing anti-money laundering measures and the 
establishment of the  National Anti-Money Laundering Council; 
 - the introduction of a real time gross settlement system, FIJICLEAR in 2007;   - the introduction of the Foreign Currency A ccount Scheme to attract non-residents and 
former Fiji Citizens to send their funds through the banking system; and  
 - plans to establish a Financial Services Ombudsman, broaden the  capital market and 
develop a secondary bond market, and lib eralise the superannuation industry to 
promote competition, widen the product ra nge and improve investment returns. 
 
                                                     
 
8 These include a 10% fiscal duty, free import exercise on building material, furnishing and fittings; a 
5% fiscal duty, free import exercise on specialized boat and vessels and free import exercise on heavy plant and 
machinery for project  development work. 
9 Local capital should be F$2 million. WT/TPR/G/213 Trade Policy Review 
Page 14 
 
 
 (iii) Information and Communication Technology (ICT) 
38. Fiji has a relatively reliable and efficient di gitalized telecommunications system and its 
broadband capability is by far the best in the Pacifi c, when compared to similar small island countries. 
Fixed-line penetration has increased slightly from 11.9% in 2002 to 14.3% in 2008. Mobile-phone 
penetration has increased from 11.0% in 2002 to over 75.0% in September 2008 and about 85.0% of 
telephone subscribers in 2008 have  mobile phones, compared to 48% in 2002. Wireless connection 
has also been deployed to the rural areas and a bout 95% of the population have coverage via the 
national mobile network.  
39. The major development for the period unde r review was the liberalisation of the 
telecommunications sector in January 2008, whic h ended a 25 year monopoly that was granted 
through an exclusive licence until 2014. The 2008 Pr omulgation entered into force in August 2008 
and a second mobile licence was issued to Digicel Fiji Limited, thus endi ng Vodafone Limited’s 
(VFL) 14 year monopoly.10  Digicel commenced services in October 2008 and with added 
competition in the mobile industry, the prices are expected to decline and consumers have already 
started to receive the benefits in terms of cheap phones and calling rates. 
40. There is also more competition in internet ser vice provision and Voice Over the Internet 
Protocol (VOIP) services. Initially, VOIP like call back  services, were deemed illegal in an attempt to 
support Fiji International Te lecommunications Limited’s11 (FINTEL) high international call prices, 
but the Cabinet approved a policy in 2007, whic h allows VOIP through licensed providers.  
Previously, a state owned company Telecom Fiji Limited12 (TFL), through its parent holding 
company Amalgamated Telecommunications Holdin gs (ATH), had a monopoly on domestic voice 
(local and long distance) and data transmission ser vices. Now VOIP services are being provided by 
TFL, Connect and other VOIP licensees and consumer s have a lower cost and an alternative to 
FINTEL’s monopoly services.  TFL’s VOIP charges are 50 to 60% lower than the charges for calls 
going through FINTEL. 
41. However, with the exception of VOIP, FI NTEL still has a monopoly over International 
Gateway Rights for 18 months. Wh en this monopoly expires, competitors are expected to have 
reasonably priced direct access to  overseas carriers through the Inte rnational Gatewa y and this will 
result in even lower prices. Lower international pr ices are expected to have a positive effect on the 
development of the information and communication technology (ICT) industry and this will enable 
Fiji to attract investment in the ICT sector  including the establishment of call centres. 
42. Internet penetration rates increased from 0.9% in 2002 to 1.6% in 2007 (about half with 
broadband).  In 2002, the Government licensed sever al Internet Services Providers (ISPs) to compete 
                                                      
10 Vodafone Fiji Ltd, 51% owned by Telecom Fiji Ltd (TFL) and 49% by Vodafone International Ltd, 
was the sole provider of mobile services under a licen ce assigned from TFL. All operators had to use the TFL 
domestic network, and it shared revenues with FINTEL (47%) and Vodafone for terminating international and 
mobile calls respectively.  This enabled TFL to maintain below cost tariffs on local calls and line rentals due to 
cross-subsidies from international and mobile calls. 
11 FINTEL (51% owned by ATH and 49% by Cable Wireless Ltd) had the monopoly on international 
voice and data transmission services.   
12 TFL was given temporary concessions as part of the negotiations and subject to TFL continuing to 
make significant investment into broadband infrastructure used for IP excluding copper cable (broadband 
infrastructure investment), it will be permitted to nego tiate access contracts with other service providers on a 
commercial basis and will not, for at least 3 years from the commercial launch of the broadband service 
provided through the broadband infrastructure investment, be compelled to permit access to such broadband 
infrastructure otherwise than on a commercial basi s so long as it does not act anti-competitively. Fiji WT/TPR/G/213 
 Page 15 
 
 
 with the state entity Connect (owned by ATH and an offshoot from TFL) but most of them are still 
non-operational due to interconnection difficulties.13  A third major ISP, Kidanet, 100% owned by 
FINTEL began providing internet services in 2007.  Th is led to a drop in bandwidth cost by more than 
60% and the costs are expected to decline furthe r due to more competing service providers entering 
the now liberalised market.   
43. The legislation also provides for the establishment of an independent body, the 
Telecommunications Authority of Fiji (TAF), to regul ate the sector, including the issuing of licences 
and technical standards. An open licensing system h as been adopted with an unrestricted number of 
licences and they are issued on a "first-come first served" basis subject to meeting limited 
requirements. The Act also provides for the est ablishment of an "economically reasonable and 
technically feasible" universal services scheme.   
44. In June 2003, Cabinet endorsed Fiji’s Electr onic Commerce Policy Framework. The Policy 
Framework identifies six key issues that need to be addressed in order to create a safe and an efficient 
online environment. These are Information, Payment,  Redress, Jurisdiction, Privacy, Price and Speed 
of Internet Usage. In 2007, this policy frame work was reviewed by an ADB funded electronic 
commerce specialist and the appropriate recommend ations were adopted. The Cabinet endorsed the 
Electronic Transactions Promulgation 2008 in March 2008, and it was gazetted on 
14 November 2008.  The objective of the Promulgati on is to recognize the validity of and promote the 
development of electronic communications in commercial and non-commercial dealings and in dealings with government entities; and to remove  uncertainty about using electronic methods to 
satisfy various legal requirements on documents and record keeping.  
45. Fiji Television Limited's exclusive licence on pr oviding free-to-air channel and terrestrial-
based pay television channels ende d in 2004 and four more companies have been granted licenses to 
provide free-to-air television following a tendering process.   
46. The Government has introduced a number of ince ntives in order to promote investment in the 
ICT sector.  Some of the incentives that will be av ailable in 2009 include the extension of the current 
10 year tax holiday granted to ICT operators to 13 years for new operators and a duty free concession 
on the importation of computers, specialized plant,  equipment and fittings and specialised furniture 
for the initial establishment of business. The audiovisual  industry also benefits from a 35% tax rebate.   
(iv) Transport 
47. Fiji has a good road transportation system with  all major cities and towns connected and the 
Government gives a lot of support to this sector.  
48. The Fiji Islands Maritime Safety Administration (FIMSA), a Department of the Ministry of 
Works and Transport, is responsible for all maritime  matters within Fijian wate rs.  Maritime transport 
plays a vital role in Fiji and most exports ar e transported by sea. The Marine Act of 1986 (and 
regulations) was amended in June 2005 to give effect to the re-organization of sea ports and in 
September 2008, the Cabinet approved the Sea Ports Management Regulation to ensure the effective 
implementation of the Sea Ports Management Ac t 2005 by the Fiji Ports Corporation Limited
14 
(FPCL). There are also plans to establish FIMSA as an  independent statutory authority to enable it to 
                                                      
13 Unwired the first independent ISP was licensed in 2002 but only commenced operations in 
October 2005, 6 other licensed ISP is still non-operational. 
14 The Regulations deal with licensing of busine ss operations within port areas and contractual 
obligations with the Fiji Ports Corporation Limited. WT/TPR/G/213 Trade Policy Review 
Page 16 
 
 
 perform its functions better.  The Government is also planning to introduce competition in stevedoring 
services gradually once the FPCL is well established.  
49. Air transportation plays a major role in suppor ting the tourism industry and in transporting 
exports of agricultural products and other perishab le items. The Government also has a scheme which 
subsidises unprofitable routes to outer islands. Fiji is a member of the Pacific Aviation Safety Office, 
which opened in 2002 and its Cabine t has approved Fiji becoming a si gnatory to the Pacific Islands 
Air Services Agreement (PIASA-2003), whic h entered into force in October 2007.15  Fiji has bilateral 
agreements with 27 countries but only 7 are operative. 
(v) Energy 
50. The energy sector plays a vital role in Fiji’s economic development.  In 2006, electricity 
generation contributed about 2.2% to GDP. The state-owned Fiji Electricity Authority (FEA) 
generates almost all electricity in Fiji.  However,  the Government plans to restructure the FEA to 
encourage private sector participati on through Independent Power Producers16 (IPPs). The 
Government is also considering separating FEA’s regulatory functions from its commercial activities. 
The overall goal is to achieve efficient, cost ef fective and environmentally sustainable energy 
development. The Government aims to improve the national energy mix from 40% of renewable 
energy to 50% for the grid and from 5% to 10% for o ff-grid electricity by 2011. It also aims to have 
30% of fuel used in transport from bio fuel, Liquid Petroleum Gas (LPG) or Liquefied Natural Gas (LNG) by 2010.  Fiji has also adopted the 2004 Pacific Islands Energy Policy (PIEP) and the Pacific Islands Energy Strategic Action Plan (PIESAP) as  the basis of its National Energy Policy and the 
Strategic Action Plan that was endorsed by Cabine t in November 2006. In 2006, the Cabinet also 
approved the establishment of an independent mega-regulator that would cover electricity, 
telecommunications, water (and sewerage).  Table III.1 shows the percentage changes in GDP by 
sector from 2000-2008. 
Table III.1 
Percentage distribution of GDP by major industry group, 2000-2008 
GDP at Current Price  Contribution to Growth 
ACTIVITY 2000(r) 2001(r) 2002(r) 2003(r) 2004(r) 2005(r) 2006(p) As at  
18/09/08 
2007(e) As at 
18/09/08 
2008(f) 
Agriculture, Forestry, 
Fishing & Subsistence -2.8 -1.5 1.3 0.3 0.9 0.9 0.0 0.0 1.3 
Sugarcane -3.0 -0.8 0.8 0.3 -0.3 -0.1 0.2 -0.6 0.0 
Fishing 0.3 -0.6 0.5 -0.6 0.7 0.4 -0.3 -0.3 0.2 
Forestry 0.0 0.1 0.0 0.2 0.1 0.0 -0.1 0.0 0.2 
Manufacturing -0.1 2.4 0.1 -0.2 2.4 -0.9 2.2 1.0 1.5 
Sugar 0.5 0.0 -0.3 -0.8 0.2 0.5 0.5 -0.3 0.0 
Beverage and Tobacco 0.3 0.6 0.3 0.5 0.5 1. 0 1.4 1.1 0.9 
Other Food Industries -0.2 0.1 0.1 0.1 0.1 0.0 0.1 0.0 0.1 
Clothing and Footwear -0.3 1.4 -0.7 -0.5 1.0 -2.6 -0.5 0.1 0.0 
Other Non Food 
Industries -0.3 0.3 0.6 0.3 0.5 0.2 0.7 0.0 0.4 
Electricity  -0.2 0.2 0.1 0.1 0.1 0.0 0.1 0.1 0.2 
Table III.1 (cont'd) 
                                                      
15 PIASA aims to liberalise the air transport servi ces and to create a single Pacific aviation market 
involving various rights. 
16 The Government plans to have 6 IPPs by 2011. Fiji WT/TPR/G/213 
 Page 17 
 
 
 GDP at Current Price  Contribution to Growth 
ACTIVITY 2000(r) 2001(r) 2002(r) 2003(r) 2004(r) 2005(r) 2006(p) As at  
18/09/08 
2007(e) As at 
18/09/08 
2008(f) 
Building & 
Construction -0.4 -0.2 0.3 0.5 0.3 1.4 0.9 -0.9 0.4 
Hotels & Restaurants -2.3 0.0 1.8 0.6 2.4 2.0 0.6 -0.3 1.2 
Transport & 
Communication -0.6 1.6 0.8 1.9 -0.4 2.9 -0.3 0.0 1.8 
Transport -1.2 1.8 0.8 1.2 0.2 2.4 0.1 0.1 1.4 
Communication 0.6 -0.2 -0.1 0.7 -0.6 0.5 -0.3 -0.1 0.4 
Finance  0.4 0.8 -0.4 -0.4 0.4 1.1 2.0 -0.3 0.0 
Insurance 0.2 1.0 0.5 -0.5 0.1 -1.1 1.4 0.0 0.3 
Real Estate & Business 
Service 0.9 -1.0 -0.1 0.5 -0.2 0.4 1.5 0.4 0.7 
Source:   Reserve Bank of Fiji. 
 
IV. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) TRADE POLICY MEASURES AFFECTING IMPORTS  
51. Tariffs are the major trade policy tool that is used by Fiji to control imports. However, other 
non-tariff measures such as import licences, internal taxes and regulations apply to imports as well.  
(i) Tariffs 
52. The Customs Service of the Fiji Islands Revenue & Customs Authority (FIRCA) is 
responsible for all customs matters.  Fiji has adopt ed the HS 2007 nomenclature and since its previous 
Trade Policy Review, it has maintained a relativel y open trading system and tariffs have been 
simplified. The tariff rates are reviewed annually by FIRCA at the end of each calendar year as part of 
budget deliberations.  Fiji’s tariff structure consists  of four tariff bands (0 %, 5%, 15% and 27%) but 
new changes were introduced during the 2009 Budget and all the tariffs in the 27% tariff band will be 
increased to 32%.17  The increase in the duty rate aims to encourage import substitution of local 
products, dampen demand and provide stimulus to domestic industries. About 96% of tariff lines are 
subject to ad valorem  rates. 
53. Fiji has bound at the WTO almost 50% of its ta riff lines, mainly in agriculture, and the 
applied average MFN tariff rates are well below boun d rates (averaging 40.2%). Fiji needs this policy 
flexibility to adjust its applied tariffs in order to promote economic growth and for fiscal purposes. 
The tariffs on agricultural products have on aver age increased during the period under review on an 
MFN basis from 9.1% in 2003 to 12.0% in 2008 (based  on HS).  In order to mitigate the effects of 
rising prices of food and fuel, the Government reduced fiscal duties on basic food items from 27% to 15% in 2008 and duties on some of  these products were reduced to 0%  in June 2008. The zero percent 
fiscal duty on these items will be maintained in 2009.   
54. In 2008, tariff rates on some motor vehicles we re increased from 15% to 27% and alternate 
specific duties were introduced for used vehicles according to engine size. Tariffs on earthmoving 
equipment were increased from 3% to 5% and those on such second-hand vehicles were increased 
                                                     
 
17 The fiscal duty of multi-wick kerosene stoves and spare parts will also be increased from 5% to 32%, 
and the fiscal duty of golf cars and similar vehicles will be increased from 15% to 32% but the import excise 
duty of 10% on prime movers and specialized earth moving machinery will be removed. WT/TPR/G/213 Trade Policy Review 
Page 18 
 
 
 from 3% to 27% for environmental and fiscal purposes.  Since the oil prices appear to have stabilised, 
the Government will revert to normal duty rates on petroleum and duties for motor spirits will be 
increased from 34 cents to 44 cents per litre, diesel from 9 cents to 18 cents per litre and motor spirits used for blending pre-mixed outboard fuel from 17 cen ts to 27 cents per litre from 1 December 2008.  
Tariffs on new buses were also reduced from 27% to 5% under concessionary arrangements until the 
end of 2010.  Fiji has converted most of its specifi c and mixed tariffs into ad-valorem equivalents.  
(ii) Internal Taxes 
55. Fiji also levies other internal taxes which in clude a 12.5% value adde d tax (VAT), excise tax 
(10% and 15%) and other duties and charges.   Import excises also apply to local products but in many 
instances there will simply be no local production. Th e Government also needs technical assistance to 
review the excise taxes and ensure that they are applied equally between do mestic and imported like 
products.
18  Fiji imposes excise taxes on about 535 tariff lines and the Government has removed 
excise duties of 15% on about 29 tariff lines during the 2009 Budget.19 
(iii) Trade Facilitation 
56. Fiji joined the World Customs Organization (W CO) in July 1997 and has acceded to two of 
its conventions20 and is working on accession to the Kyoto Convention.21 It is also implementing the 
recommendations from the 2008 WCO Diagnostic St udy on the Columbus Programme and the 2008 
IMF Review of Fiji’s Tax and Customs Opera tions. Recent customs reforms reflecting Kyoto 
standards include the Border Cash Reporting regi me and the FIRCA Risk Management Framework. 
57. The Customs Act 1986 and the Customs Regulations  1986 have been amended since the last 
Review to facilitate trade.  FIRCA started phasi ng out Agents Importers E xporters (AIE) codes in 
August 2006 as the common identifier for submitti ng import declarations to customs under its 
computerized Automated System for Customs Da ta (ASYCUDA), which was updated to version 18c 
and had its network infrastructure improved.  A Single Administration Document (SAD) can now be 
submitted electronically or manually and onl y four documents are legally required.22 Computerization 
has been extended to allow shipping manifests and SADs to be submitted and processed electronically 
and most brokers and traders operate on-line to process documents unless profiled for customs checks. 
Goods valued over F$20,000 are automatically ch annelled through the Yellow Lane for closer 
examination, especially of documentation. Goods  selected to pass through the Red Lane are 
                                                      
18 Discriminatory excise taxes apply to imported tobacco products to encourage use of domestic leaf. 
For tobacco products, the excise tax di scriminates against imports because it is set lower for domestic products, 
for example, the tariff rate on manufactured tobacco (i ncluding cigars, cheroots an d cigarillos) in 2008 was 
F$88.01 per kg while the excise rates on domestic prod ucts varied according to whether they were made from 
foreign (F$78.77 per kg) or Fijian ($F46.27 per kg) tobacco leaf, thereby encouraging use of locally grown tobacco.  In 2008, cigarettes made domestically from local tobacco were subject to excise rate of F$0.9113 per 
10 cigarettes compared to cigarettes made locally from imported tobacco of F$1.3671 cents.     
19 Excise duties of 15% have been removed on 29 tariff limes under Chapter 84 (machinery) and 
28 tariff lines under chapter 87 (tractors, sp ecial purpose motor vehicles, trailers etc…). 
20 These are the Convention on the Harmonized Commodity Description and Coding System and the 
Customs Convention on the Temporary Importation of Scientific Equipment.    
21 The International Convention on the Simplification and Harmonization of Customs Procedures 
(Kyoto Convention). 
22 These are invoice, packing slip, bill of lading an d the C45 declaration form, the others are optional. Fiji WT/TPR/G/213 
 Page 19 
 
 
 physically inspected.23  About 95% of Fijian imports are clea red within three days, with most on 
arrival, including those declarations profile d for customs checks or examinations.   
58. Additional measures are being taken to address obs tacles to imports and Fiji is working hard 
to improve the impartial application of laws, regulat ions and judicial decisions; establish an effective 
formal private sector consultation mechanism and an effective advance ruling system, minimise 
documentation requirements, ensure that fees and charges are reasonable, and eliminate corrupt practices and to expedite clearance of goods. A lot of  technical assistance will be required to address 
these issues.  
59. FIRCA continues to implement the WTO Customs Valuation Agreement and Fiji does not 
require pre-shipment inspection of imports.  Fiji uses other non-tariff measures to control imports and 
certain products can be prohibited on health
24, safety, security, religious or moral reasons. The import 
restrictions are applied in accordance with the re levant WTO and internati onal laws and guidelines. 
Some products will also require import licenses and these are issued by various Government departments.  
60. Fiji is a member of various organisations which deal with standards and technical 
requirements and uses international st andards in order to facilitate trade.
25  Reforms in the  
Department of Quarantine and Inspecti on Services started in January 200526, the recommendations for 
reforming the Department were adopted in 2006 and a Charter Administration Committee (CAC) was 
formed in 2007 to oversee their implementation. The main objective of the reform is to replace the 
Department with a statutory Bio-Security Authority of the Fiji Islands by 2008, which will be created 
under a Bio-Security Act that would merge the Plant Quarantine and Animal Importation Acts.  The 
Bio-Security Bill is currently being reviewed by  the Attorney-General. The Act will also address a 
number of bio-security issues including the establishm ent of enquiry points required under the SPS 
Agreement.  
(2) MEASURES DIRECTLY AFFECTING EXPORTS  
61. Fiji also imposes export taxes of 3% on a number of products including sugar, timber, 
molasses, gold and silver and a 3% export tax on unprocessed fish was introduced in 2009. These 
taxes are used to encourage local downstream processing, environmental conservation and for fiscal purposes. Some exports are controlled by export li censing system and it takes one or two days to 
export goods even for high risk exporters requiring full inspection. A Secure Exports Scheme, whereby documents are submitted 24 hours before th e ship’s arrival, was introduced in 2007 to 
accelerate clearance and customs officers are based at each area to verify exports.   
                                                     
 
23 In 2007, some 47% and 20% of SADs were automatically selected to pass through the Red and 
Yellow Lanes, respectively, based on importer profiles built into ASYCUDA.   
24 For example imports, of used motor vehicles (cars, trucks and buses) over four years old and plastic 
bags, which are made domestically were banned in the 2008 Budget for environmental reasons. 
25 These include the Codex Alimentarius Commissi on, the Pacific Area Standards Congress (PASC), 
and the International Organization for Standardization (ISO) (since 2006), the International Plant Protection 
Commission (IPPC) in August 2005.  It is also a member  of the Pacific Plant Protection Organization (PPPO), 
the Asia and Pacific Plant Protection Commission (AP PPC) and the World Organization for Animal Health 
(OIE).   
26 The Department of Quarantine and Inspection Services was declared a Reorganisation Enterprise 
under the Public Enterprise Act in January 2005, and a Scoping Study and Audit of its operations was conducted with the objective of reducing delays in issuing import permits, inconsistency in standards, and to comply with 
the WTO  Agreement on Sanitary and Phytosanitary M easures (SPS) and also to improve service quality and 
delivery. WT/TPR/G/213 Trade Policy Review 
Page 20 
 
 
 62. The Government provides a wide range of export assistance in order to increase investment in 
exporting activities.  A number of schemes have been notified to the WTO Committee on Subsidies 
and Countervailing Measures and Fiji was granted an  extended exemption be yond 2002 to maintain 
these export incentives until end-2009 (including a two-year phasing out period).27  T h i s  w a s  
subsequently extended on request in July 2007 until end-2015 (including a two-year phasing out 
period).28  The Government is also working on en suring that all its incentives including the 
concessionary finance facilities administered by the R eserve Bank of Fiji to assist exporters, namely 
the Export Finance Facility (EFF) and the Export Cred it Ratio (ECR) are consistent with WTO rules.  
Both the EFF and ECR have been notified to the WTO Committee on Subsidies and Countervailing 
Measures (the latest in 2002).   
63. The European Commission imposed a ban on Fiji’s  fish exports on the basis that the Fiji 
Competent Authority does not meet the EU health re quirements. This ban has devastated the fisheries 
industry and many poor families who depend on this  sector for their survival. However, Fiji is 
working hard to strengthen its Competent Author ity through technical as sistance that is being 
provided by the ACP-EU Strengthening Fisheries Progr amme and would like to have this ban lifted as 
soon as possible. A lot of technical a nd financial assistance is also re quired in order to strengthen the 
Competent Authority and to address other non-tariff barri ers affecting Fiji’s exports.   Fiji also wants 
its trading partners to simplify rules of origin and to remove stringent non-tariff barriers affecting its 
exports.   
(3) TRADE -RELATED MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Taxation 
64. The company tax rate is 31% (reduced from 32%  in 2003) for resident and non-resident 
companies, 30% on income of mutual insurance co mpanies in relation to life insurances and 2% for 
non-resident shipping companies. The company tax w ill be reduced to 29% in January 2009 and to 
28% in 2010 to encourage investment.   
(ii) Foreign Investment 
65. The Fiji Islands Trade and Investment Bureau (FTIB), an independent statutory body, is 
mandated to promote, stimulate and facilitate tr ade and investment in Fiji under the Foreign 
Investment Act (2004), as well as registering foreign di rect investment (FDI). Fiji has liberalized and 
rationalized its foreign investment regime since the last Review and some of the major reforms 
include: 
 - the amendment of the  Foreign Investment Act (1999) in 2004 to make the FTIB a 
registration agency and not just an invest ment approval agency, with the time for 
registration of investment projects being drastically reduced from 15 days to 2 - 3 working days;  
 - the implementation of paperless foreign inv estment registrations on-line in July 2008, 
which substantially reduced "red tape" a nd increased transparency by introducing 
"digital footprints" as checks and balances;  
 - the FTIB plans to establish a ‘one-stop-s hop’  to coordinate the activities of about 
22 agencies involved in the investment approval process, and to establish an e-
                                                     
 
27 WTO document, G/SCM/39, 20 November 2001.   
28 WTO documents G/SCM/W/542, 2 July 2007; G/SCM/W/542/Suppl.1, 9 July 2007; WT/L/691, 
31 July 2007; and G/SCM/N/163/FJI, 4 September 2007. Fiji WT/TPR/G/213 
 Page 21 
 
 
 Government project and  Investments Appr oval Tracking System (IATS)  to track the 
approval processes with these  agencies including the development of an internal web-based investment tracking system for registration, facilitation and monitoring of registered projects; and 
 - a review of the list of restricted and reserved activities under the 2008 Foreign 
Investment Regulation, and the  reduction in  local equity participation requirements 
and an increase in  the capital equity  contribution of foreign nationals.
29 
 66. Fiji’s FDI stock was estimated at US$430 million in 2006
30 and the Government has offered 
generous investment incentives to promote i nvestment. However, the Government plans to 
progressively phase out some of these incentives and en sure that only those that are necessary, well 
targeted, performance based, and time bound are kept .  To this end, the Government has announced 
that it will establish a Tax Free Region (TFR) with effect from 1 January 2009 and the TFR incentives 
will include a 13 year tax holiday, import duty exem ption on raw materials, machinery and equipment 
for initial setup. In addition, companies that start ne w projects with at least 25% equity participation 
involving indigenous Fijians will be gran ted an additional 5 year tax holiday.31  The qualifying 
conditions for the TFR are contingent on employment  levels generated and an initial investment of 
$2 million. These TFRs are primarily to support development in economically depressed zones in the country and not necessarily contingent on producti on for export. Furthermore, all importation of 
renewable energy and energy conservation g oods and equipment will be granted duty free 
concessions. Fiscal duty and import excise on motor vehicles to be licensed as public service 
passenger vehicles which operate on Liquefied Petroleum Gas (LPG) or Compressed Natural Gas (CNG) will be reduced from 27% to 0% and 15% to 0% respectively. A 10 year tax holiday will also 
be granted to new projects by companies undert aking commercial agriculture farming, agro-
processing and bio-fuel.
32  Any plant, machinery, equipmen t and chemicals used for the initial 
establishment of such new projects w ill be granted duty free concession. 
67. In general, Fiji’s measures comply with the Agreement on Trade-Related Investment 
Measures and the Government will c ontinue to review its tax incen tives including those relating to 
tobacco manufacturing to ensure that they are not tied to minimum local-content requirements.  
(iii) Competition Law 
68. In 2004, the Commerce Commission was establis hed as an independent institution from the 
Ministry of Commerce and is now responsible fo r administering the competition provisions on 
restrictive business practices and mergers. Fiji ma intains extensive price controls which are 
administered by the Prices and Incomes Board, but th e Government plans to review the merits of price 
controls with a view to promoting pr ivate sector development and competition.33  The Government 
intends to dismantle monopolies in utilities that have severely constrained economic growth and to 
                                                      
29 The 2008 Foreign Investment Regulation clearly identifies sectors which are open to foreign 
investors and those that are reserved for Fijians as well as those that are open but with some restrictions.    
30 UNCTAD, World Investment Report 2007.  Viewed at: http://www.unctad.org/en/docs 
/wir2007_en.pdf. 
31 Such incentives shall be provided to new companies investing at least $2 million. 
32 The incentive will be available from 1 January, 2009 to 31 December 2014 and to qualify for tax 
exemption, a minimum of $2 million investment is required and the generation of employment of at least 
30 local employees. To qualify for the corporate tax exemp tion, the investor must invest at least $1 million and 
employ at least 20 local employees. 
33 It will take the first step in January 2009 by immediately lifting the price controls on rent on 
commercial properties.   WT/TPR/G/213 Trade Policy Review 
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 regulate unfair trade practices, anti-competitive beha viour, unfair monopoly practic es and sale of sub-
standard products. In 2006, the Ministry of Public Enterprises formulated a comprehensive 
programme of Reorganising, Restructuring, Corpor atising and Privatizing st ate owned enterprises to 
accelerate divestment. Technical and financial assist ance will be needed to develop a comprehensive 
privatisation policy.  
(iv) Intellectual Property Rights 
69. Fiji is committed to implementing its oblig ations under the WTO Agreement on Trade-
Related Aspects of Intellectual Property Rights (TRI PS). The Patent Act, the Trade Marks Act (1970), 
the Merchandise Marks Act, and the Copyright Act (1999) were fully in force since 2000 and the 
copyright and patents laws have been amended si nce the last Review to improve compliance with 
international commitments.  Fiji (together with ot her Pacific Island countries) is also working on a 
regional model law on traditional kn owledge, genetic resources and cu ltural expressions. Aid for trade 
will be required in order to fully implement and e ffectively enforce its laws on intellectual property 
including those on traditional know ledge and genetic resources.  
(v) Government Procurement 
70. The Ministry of Finance is responsible for fo rmulating Government procurement procedures 
and agencies must meet the regulations in the Fina nce Act, 2005. The main objective is to improve the 
efficiency of government procurement and to re duce corrupt practices.  Procurement of goods and 
services above F$50 000 can be approved by the Ce ntral Tender Board that will be established under 
the new Act. The Government planned to introd uce a new financial management initiative on 
government procurement in 2008 and to establish an  Independent Procurement Agency. Reforms in 
government procurement are also implemented to st reamline in particular the bureaucratic approval 
processes which are often barriers to the timely im plementation of crucial and urgent infrastructure 
development projects. Technical assistance to formulate Government Procurement guidelines will also be required in this area.    
V. TRADE AGREEMENTS 
71. The Government consults widely with all the stakeholders through regular meetings of the 
inter-ministerial Trade Devel opment Committee (TDC) and the Extended TDC, which includes 
private sector stakeholders and civil society. This consultative mechanism ensures that the views of all 
the stakeholders are taken into account in the WTO negotiations and other regi onal and bilateral trade 
arrangements. The normal trade policy formulation i nvolves Cabinet approval, publication of the bill, 
approval by Parliament, consent by the President  and publication of the Act in the Government 
Gazette. In the absence of Parliament since th e December 2006 events, the Cabinet approves the 
publication of the Promulgation, and then it is forw arded to the President fo r assent and published in 
the Government Gazette. 
(1) T
HE WORLD TRADE ORGANISATION  
72. Fiji is making every effort to implement its WTO commitments and all the outstanding 
notifications to the WTO will be submitted in 2009.34  Fiji has regularly submitted tariff data to the 
                                                      
34 Notifications are due on domestic support and ex port subsides, market acce ss (Agreement on Import 
Licensing procedures -Art 7.3-), Quantitative restrictions (G/L 59), Integrated Databa se for Personal Computers, 
Agreement on Subsidies and Countervailing Measures (Art . 25.1, xvi:1),  Art XVII:4 (a) Understanding on the Fiji WT/TPR/G/213 
 Page 23 
 
 
 WTO Integrated Data Base (IDB), including for 2008 and measures are being taken to reform 
outdated trade-related laws. This is  one of the identified areas of technical assistance which needs to 
be addressed to facilitate the Fiji economy reaping the fuller benefits of trade liberalisation policies; 
obligations of which have been committed to in  the WTO as well as unilaterally imposed by the 
government in recognition of their virtues in fost ering economic development. Technical assistance 
will be needed in order to enable Fiji to comp ly with its notification requirements including 
submitting outstanding notifications. Trade-related laws are published in the Government Gazette, and 
many ministries and departments have we bsites to disseminate information.  
73. As a non-resident WTO Member with no office in Geneva, Fiji's participation in the DDA has 
been difficult. WTO issues are handled on an ad ho c basis by the Fiji mission in Brussels and Fiji is 
also supported by the Pacific Isla nds Forum Representative Office to the WTO. Fiji relies heavily on 
the coordination of groups present in Geneva, pa rticularly the Small and Vulnerable Economies 
(SVEs), as well as the African Caribbean and Pacifi c (ACP) States. Fiji supported all the proposals 
that were submitted by the SVEs and the AC P group and would like to see the development 
dimension and the interests of SVEs fu lly reflected in the DDA negotiations.   
74. Fiji has had a mixed experience with trade liber alisation, and acknowledges that while trade 
liberalisation has the potential to bring benefits, th ere are also challenges, and in Fiji’s case, these 
challenges were felt in the textiles sector and most recently in the sugar sector . Fiji has been working 
with the ACP States in a similar position to ensure that the DDA negotiations do not result in a drastic 
reduction in the margin of preferences enjoyed by ACP countries. The importance of the sugar sector 
to Fiji has been noted in various studies and has been raised in the WTO Negotiating Group on 
Agriculture. While Fiji is trying to find a developmen t solution to the textiles, sugar and the fisheries 
sector, it also wants a trade solution in the context of the various proposals that have been submitted 
to the WTO by the ACP countries and SVEs in order to ease the pain of adjustment. In particular, Fiji 
would like sufficient flexibilities to be accorded to sugar and fisheries through lower tariff cuts and 
longer transitional periods and the development dimension to be inte grated in all areas of the DDA 
including flexibilities on fisheries subsidies.    
(2) REGIONAL TRADE AGREEMENTS  
75. Fiji as a relatively open small island economy is subject to natural and external shocks and 
these external factors undermine its efforts to par ticipate in and benefit from the multilateral trading 
system. In order to address some of these challenge s, Fiji fully supports regional integration as a first 
step towards integration into the increasingly liberalised world economy.35 
(i) Melanesian Spearhead Group Trade Agreement (MSG) 
76. The MSG is a free trade agreement between Fiji and Papua New Guinea, Vanuatu and 
Solomon Islands.36  Fiji joined the MSG Agreement (1993) in 1998 and is required to eliminate its 
                                                                                                                                                                     
Interpretation of Art XVII, Article VI GATT 1994,  AS CM (Art 26.11), GATS (III:3) alteration of specific 
commitments, recognition measures (GATS VII:4), GATS enquiry points (Art III: 4, IV:2) 
35 Fiji is also a member of the Pacific Islands Foru m, which endorsed the Pacific Plan in October 2005, 
which amongst other things seeks to strengthen regionalism and increase sustainable regional trade, including 
trade in services, investment and temporary movement of natural persons in order to promote pro-poor 
economic growth. The Pacific Plan supports the negotiation and implementation of regional trade arrangements to expand market access and this is th e context in which Fiji has been pa rticipating in various regional trade 
agreements. 
36 New Caledonia joined as an observer. WT/TPR/G/213 Trade Policy Review 
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 tariffs within 9 years and since 2006, Fiji provi des duty free to all goods originating from MSG 
countries except those that are expr essly excluded in the Agreement.37  The MSG Agreement was 
revised in October 2005 to adopt a negative list approach to liberalisation on trade in goods.38  The 
Agreement has less onerous rules of origin (change in 4-digit HS classification) than PICTA.  With 
MSG members being the larger of the Pacific Island countries, the majority of intra-regional trade in 
goods is conducted under MSG rather than PICTA.  
(ii) Pacific Island Countries Trade Agreement (PICTA) 
77. PICTA was signed in August 2001 with the ob jective of establishing a free trade area among 
the 14 Forum Island Countries (FICs39). It entered into force in 2003 but only Fiji and five other FICs 
have passed the necessary legisla tion to commence trading under PICTA.40  PICTA requires 
developing FICs to reduce ad valorem tariffs to zero by 2015 and Least Developed Countries (LDCs) 
and Small Island States (SIS) by 2017. For those pr oducts that qualify for the negative list exemption, 
tariffs will be reduced to zero by 2020 for developing FICs and 2021 for LDCs and SIS.41  Therefore, 
Fiji is required to reduce its maximum ad-varolem  tariffs on PICTA origin ating goods to 15% in 
2009, 10% by 2011, 5% by 2013 and zero by 2015. Maximum specific duties on PICTA originating 
goods are to be reduced to 60% in 2009, 40% by 2011, 20% by 2013 and zero by 2015. Lower duties 
are also supposed to be eliminated at a faster pace. Since Fiji has no "excepted imports" (or negative 
list) it is required to phase out all its tari ffs on PICTA originatin g goods by 2015.  
78. At the moment PICTA currently covers trade in goods only (temporarily excluding alcohol 
and tobacco). However, negotiations to include trad e in services and temporary movement of natural 
persons are expected to be finalised in 2009. St udies will also be conducted on the possibility of 
including government procurement and the creati on of a Pacific Single Market and Economy to 
promote deeper integration.   
(iii) Economic Partnership Agreement (EPA) 
79. Fiji and PNG are the only Pacific ACP States (PACPS) that initialled the Interim EPA in 
2007. The EU provides duty and quota free access on a ll products except for sugar and rice, which are 
subjected to longer transitional periods. Fiji agreed to liberalise just over 84% of its imports from the 
EU over a period ending in 2023.  Other benefits of the interim EPA include improved sectoral rules 
of origin, especially for fishery products (canned fish), agro-processing and textiles. However, the de-
listing of Fiji’s eligibility to export any fish ery-related products until its Competent Authority 
complies with the EC’s stringent sanitary and phyt osanitary regulations has hindered Fiji from fully 
utilising this market access. Fiji’s sugar exports will also be adversely affected by the 36% cut in EU 
                                                      
37 These include Chapter 22 - Beverages, Spirits and Vinegar, all products except items described in HS 
Tariff code 2201, 2202, and 2209; Chapter 24 - Tobacc o and manufactured tobacco substitutes; Chapter 27 - 
Mineral fuels, mineral oils and products of their distillation; bituminous mineral waxes; and Cane sugar HS 
Code 1701.1100. 
38 The negative listing approach means that all produ cts, except those on the negative list, are deemed 
to qualify for preferential tariffs.    Fiji has no negative list. 
39 Cook Islands, Fiji, Federated States of Micrones ia, Kiribati, Marshall Islands, Nauru, Niue, Palau, 
Papua New Guinea, Samoa, Solomon Isla nds, Tonga, Tuvalu, and Vanuatu. 
40 These are Cook Islands, Niue, Samo a, the Solomon Islands and Vanuatu. 
41 Small island states are the Cook Islands, Kiribati,  Nauru, Niue, Marshall Islands and Tuvalu.  Least 
developed states are the Solomon Islands, Kiribati, Samoa (d ue to soon lose this status), Tuvalu and Vanuatu. 
All FICs are required to eliminate non-tariff barriers immediately. For products to qualify for trade under 
PICTA, they must meet the 40% local content criteria. Fiji WT/TPR/G/213 
 Page 25 
 
 
 sugar prices by 2009 as a result of domestic EU refo rms and this is estimated to lower Fiji’s export 
receipts by €42.8 million in 2009.   
80. Currently, the PACPS and the European Commi ssion are negotiating a comprehensive EPA, 
which is expected to be finalised in 2009, provide d all the issues of interest to both parties are 
resolved.      
(iv) SPARTECA 
81. SPARTECA is a non-reciprocal trade agreement between the 14 FICs and Australia and New 
Zealand. It came into effect in 1981 and provides duty-free access to all products from the FICs (with the exception of sugar by Australia). The general rules of origin under SPARTECA are very complex 
and onerous
42 and the FICs want these rules to be reviewed  to improve market access to Australia and 
New Zealand. SPARTECA may be superseded by a reciprocal (PACER-Plus) Agreement.   
(v) The Pacific Agreement on Closer Economic Relations (PACER)  
82. PACER was signed in August 2001, and entered into force in October 2002. It is not a free 
trade agreement but a framework ("umbrella") agreement for cooperation on trade and economic 
integration between the 14 FICs and Australia and New Zealand, with a view towards the 
development of a single regional market. It also pr ovides for assistance to FICs to enable them to 
implement PICTA including the Regional Trade Fa cilitation Programme (RTFP), which is aimed at 
addressing customs issues, standards and conformance and quarantine issues. PACER envisages the negotiation of Forum-wide trade arrangements eigh t years after PICTA enters into force (2011) or 
earlier when the FICs enter into a free trade agreement with any developed country (OECD) or any 
country with gross domestic product that is higher th an that of New Zealand. The commencement of 
EPA negotiations and the initialling of the Inte rim EPA may require Fiji to commence formal 
consultations with Australia and New Zealand. In formal "PACER-Plus" consultations have already 
started with Australia and New Zealand but  fo rmal negotiations may commence once the office for 
the Chief Trade Advisor is established.  
(3) B
ILATERAL TRADE AGREEMENTS  
83. The non-reciprocal bilateral agreements th at Fiji had with Tonga, Vanuatu, Papua New 
Guinea, and Cook Islands have expired.43  Fiji is negotiating a renewed non-reciprocal bilateral trade 
agreement with Tuvalu.  A bilateral agreement on agriculture was signed w ith China in August 2005. 
The bilateral agreement with the United States on F iji's quota garment exports signed in 1995 expired 
at the end of 2004 when MFA global quotas termin ated but Fiji would like to negotiate a new 
agreement with the United States. Fiji signed the Trade and Economic Cooperation Agreement 
(FATERA) with Australia in Marc h 1999. The FATERA sets a framewo rk to improve bilateral trade 
but excludes preferential arrangements.  
                                                      
42 In general, they require at least 50% of the product's total factory cost to be from the SPARTECA 
Parties. Fiji has been exporting Textiles, Clothing and Footwear (TCF), under SPARTECA and the special 
bilateral trade arrangement that it negotiated with Au stralia, called the SPARTECA (S-TCF) scheme, which was 
introduced in March 2001 and extended from 2004 until the end of 2011.  New Zealand also extended 
indefinitely in May 1999 the three-year derogation introduced in 1994 that reduced local content requirements on Fiji clothing exports to 45%. 
43 Fiji is undertaking national consultations on the Cook Islands’ request to renegotiate a bilateral 
agreement. WT/TPR/G/213 Trade Policy Review 
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 (4) INVESTMENT AND TAXATION AGREEMENTS  
84. Fiji has received an official proposal from Chin a to negotiate an Investment Promotion and 
Protection Agreement.  It is negotiating its firs t Investment Promotion and Protection Agreements 
with Britain and Malaysia, and agreed on a framework  for such an Agreement with the EU in 2005. 
Fiji concluded double taxation agreements with th e United Kingdom, Japan, New Zealand, Australia, 
Korea, Malaysia, and Papua New Guinea and Si ngapore (in December 2005 and is negotiating  
similar agreements with India and the United States.  
VI. AID FOR TRADE 
85. Fiji welcomes the WTO initiative on Aid for Trade and would like the WTO to coordinate 
with all the members and other donor agencies to en sure that the Aid for Trade initiative is fully 
operationalised to enable Fiji to address its adjustme nt problems, supply side constraints, and develop 
export competitiveness to be able to utilise market  access opportunities offered by trade liberalisation. 
Fiji’s overseas trade and foreign missions will work with donor countries and agencies to ensure that 
Aid for Trade is provided to enable Fiji to build its trade capacity and infrastructure. Aid for Trade 
will be required to enable Fiji to comply with its  existing commitments as highlighted above and to 
implement new commitments from the DDA. Aid for Trade is also required for: 
 - accessing and using the WTO Integrated Data Base, complying with notification 
requirements, the operation of SPS enquiry points and strengthening the Competent Authority in the Ministry of Health to address SPS issues, and to enhance capacity of 
the Legal Unit within the trade ministry; 
 - developing productive capacity, human resour ces development in the area of trade, 
trade negotiations and investment both lo cally and in Fiji’s overseas missions, and 
putting in place business support measures and  marketing arrangements ; and 
 - trade policy formulation, research and product development.   86. The Aid for Trade initiative must cover all th e six categories and accommodate any new Aid 
for trade needs that will be required by the smal l countries. Funding for such activities must be 
provided through an effective and time-sensitive mechanism.  
VII. CONCLUSION 
87. Fiji has learnt a lot from its second Trade Polic y Review and will use it to audit its trade 
policies and practices and undertake further reform s not only to comply with the WTO obligations, 
but also to introduce the relevant policies that support private sector development, maximise the 
economic benefits from trade and minimise distortions  and business costs. From Fiji’s point of view, 
trade is not and an end in itself, but a means to promote export-led  sustainable economic growth and 
development, with the ultimate objective of creati ng employment, raising the standards of living and 
alleviating poverty. This is the context in wh ich Fiji has been advocating for the development 
dimension to be taken into account in trade negotiati ons and for members not to adopt a ‘one size fits 
all’ approach.  Fiji is a small na tion of less than a million people, wh ich is vulnerable to natural and 
external shocks and would like its unique circumstances and leve l of development to be fully 
considered during trade negotiations and also  in the Aid for Trade context.     
88. Despite all the challenges, Fiji is fully comm itted to implementing its WTO commitments and 
will undertake further economic reforms in order to  address the domestic and global challenges that 
are affecting its economic growth a nd exports. Fiji strongly believes that trade liberalisation can play Fiji WT/TPR/G/213 
 Page 27 
 
 
 a vital role in economic development and in lifti ng thousands of its people from poverty. However, 
Fiji is seriously concerned that if not managed pr operly, trade liberalisation may have deleterious 
effects on its economy. In order to minimise the nega tive effects of liberalisation, Fiji would like the 
WTO to support both a trade (DDA) and development (Aid for Trade) solution. It is clear that for 
small countries like Fiji to benefit from trade, Aid for Trade is required to overcome the supply-side 
constraints inhibiting production and trade. Fiji h as developed a comprehensive development strategy, 
which incorporates trade as the engine of economic gr owth and to this end, would like to request all 
the WTO members and donor agencies to assist in the implementation of these programmes in order 
to enable it to diversify its exports and develop international competitiveness. 
__________