THE Coalition Government is securing Fiji’s market access into the European Union (EU) under the Interim Economic Partnership Agreement (IEPA).
In return, however, Fiji must make similar commitment via what is known as ‘reciprocity in trade’ — where Fiji agrees to allow certain products from the EU to be imported into the country duty free.
Deputy Prime Minister and Minister for Trade Manoa Kamikamica said if Fiji does not reciprocate, there was a danger that preferential or duty free access into the EU for Fiji goods under IEPA may be stopped, threatening the present volume of exports.
“Thus, implementing our market access commitments under IEPA is crucial,” Mr Kamikamica said in his ministerial statement on Monday.
“This means Fiji needs to open its markets to goods from the EU under the terms of IEPA. This involves removing tariffs and taxes on imports, on certain products, making it easier for goods from the EU to enter Fiji’s market.”
Mr Kamikamica said Fiji would take several steps to ensure tariffs committed for elimination under IEPA were effectively removed.
“This includes establishing a dedicated team to oversee the implementation of these tariff changes, ensuring that they are correctly and efficiently applied.”
Fiji signed the IEPA in 2009 and although it provisionally applied it in July 2014, it had not implemented its provisions, including the reduction and elimination of duties as per Fiji’s market access commitments.
Mr Kamikamica said since its signing, Fiji had benefitted from the arrangement, particularly in the sugar sector where EU member countries collectively accounted for a maximum of up to 90 per cent of Fiji’s total sugar exports.
“Despite challenges, such as competition and fluctuations in the global sugar prices, the EU has been a consistent and reliable destination for our exports, contributing significantly to our foreign exchange earnings and providing employment opportunities for our people.”
He said the IEPA had opened up opportunities to export goods such as tuna, ginger, mineral water and garments with exports to the EU reaching a peak of $132.4million in 2022.
Mr Kamikamica said the Government would maintain ongoing communication with the EU to resolve any issues that might come up during the implementation of the commitments under the IEPA.
