FIJI is keeping a close eye on policy developments in the United States as President Donald Trump rolls out sweeping measures involving climate change agreements, foreign aid and border security.
The US has pulled out of the Paris Agreement, the World Health Organization and halted foreign aid, pending a review.
A statement from US Department of State spokesperson Tammy Bruce released on January 26 stated the decision to pause all foreign assistance by Secretary of State Marco Rubio was consistent with President Trump’s executive order to reevaluate and realign US foreign aid.
“President Trump stated clearly that the United States is no longer going to blindly dole out money with no return for the American people,” Ms Bruce said.
“The mandate from the American people was clear — we must refocus on American national interests.”
The move comes as the US Agency for International Development (USAID) — one of the biggest conduits of US foreign aid – opened an office in Suva to further assist nine Pacific Island Countries (PICs).
In addition, the US President has said he would impose tariffs on goods imported into the country.
When asked about any possible financial implications these moves would have on Fiji, Deputy Prime Minister and Minister of Finance Professor Biman Prasad told this newspaper it was too early to pre-empt anything.
“We are following the developments on the policy front in the US,” he said.
“Fiji’s economy had shown great resilience despite the global uncertainties caused by factors such as stagnating global growth, elevated inflation and commodity prices, supply chain disruptions, and escalating geopolitical tensions and geo-economic fragmentation.
“We don’t expect any disastrous consequences at present. We do not want to just speculate.”
He said the imposition of tariffs was so far suggested for Canada, China and Mexico; Fiji was not on the list of countries.
Prof Prasad said they did not expect Fiji’s exports to the US to be affected.
“It is also too early to forecast the imposition of these tariffs on countries from which we import such as China or Canada.
“It’s too early to assess the actual impact. We are happy that the USAID office has been expanded here in Fiji to serve Fiji and the Pacific and we hope that funding for the Pacific will not be affected.”
