Fiji Islands

Location : Oceania, island group in the South Pacific Ocean, about two-thirds of the way from Hawaii to New Zealand

Capital : Suva ( Viti Levu)

Languages : English (official), Fijian, Hindustani 

Area : 18,270 sq km

Land Use: arable land: 10.95%; p ermanent crops: 4.65%; o ther: 84.4% (2001)

Natural Resources : timber, fish, gold, copper, offshore oil potential, hydropower

Population : 893,354 (July 2005 est.)

Labour force : 137,000 (1999) 

Labour force participation rate : 15.34% of population (1999)

International Organisation participation : ACP, ADB, C, CP, FAO, G-77, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, ISO (correspondent), ITU, MIGA, OPCW, PCA, PIF, SPARTECA, UN, UNCTAD, UNESCO, UNIDO, UNMIK, UNMISET, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO

GDP per capita : U$5,900 (2004 est.)

GDP Real Growth Rate : 3.6% (2004 est.)

GDP sectoral composition : agriculture: 16.6%; industry: 22.4%; services: 61% (2001 est.)

Industries: tourism, sugar, clothing, copra, gold, silver, lumber, small cottage industries 

Agriculture - products : sugarcane, coconuts, cassava (tapioca), rice, sweet potatoes, bananas; cattle, pigs, horses, goats; fish

Exports : U$609 million f.o.b. (2002)

Exports - commodities : sugar, garments, gold, timber, fish, molasses, coconut oil

Exports - partners : US 17.4%, Canada 14.8%, France 13%, China 10.5%, UK 8.7%, Netherlands 7.5%, Norway 6%, Germany 5.9% (2004)

Imports : U $835 million c.i.f. (2002)

Imports - commodities : manufactured goods, machinery and transport equipment, petroleum products, food, chemicals

Imports - partners : Australia 25.9%, Singapore 23.1%, New Zealand 21.1% (2004)

QUALITATIVE TRADE PROFILE  

The main objective of Fiji's current economic policy is to enhance the role of market forces in the allocation of resources, with a view to diversifying the economic base. The Fiji tariff has twelve categories. In the Uruguay Round, Fiji bound some 42.5% of its non-agricultural tariff lines at ceiling rates of 40%, mostly in pharmaceuticals, fertilizers, cosmetics, certain textiles, iron and steel and products, and miscellaneous items. Most agricultural tariff lines are also bound at ceiling rates of 40%, except for rice, milk powder, alcohol and tobacco products. Tariffs on milk powder and rice are bound at 46%. Most applied rates are well below the bound rates. The current average level of applied tariffs is 27%, with most agricultural products set at 15%.

INSTITUTIONAL FRAMEWORK 

The Ministry of Foreign Trade and External Negotiations is tasked with trade policy formulation responsibilities. Inter-ministerial policy co-ordination is undertaken in the auspices of the Focused Trade Development Committee (TDC). The views of private sector stakeholders are solicited in an "Extended TDC".

The Ministry of Finance and National Planning administers Fiji's tariff. Tariff rates are implemented by the Ministry's Customs and Excise Department (CED). Proposals for changes in tariffs are made by the CED. The Comptroller of the CED consults with the Budget Section of the MOFED regarding proposed changes in tariffs, but final authority on proposals rests with the Minister. Actual changes in tariff rates are normally effected in the context of the Budget, which requires Parliamentary approval. The CED collects revenues and enforces laws on import-prohibited goods. Tariff concessions are generally granted by the Minister of Finance and National Planning.

The private sector may influence the legislative process, and trade and related policies, through consultation with Ministries by various associations, such as the Fiji Chamber of Commerce, the Fiji Employers Federation, the Fiji Master Builders Association, the Fiji Hotel Association, the Fiji Manufacturers Association and the Fiji Trades Union Congress. The Fijian Initiative Group (FIG) enhances indigenous Fijians' participation in business, through the submission of various policy proposals to Government.

TRADE AGREEMENTS

Bilateral

Fiji has non-reciprocal trade agreements with the Cook Islands, Kiribati, Tonga and Tuvalu. A reciprocal agreement has been signed with Australia, China, Papua New Guinea and Vanuatu and negotiations are underway for such an agreement with Nauru, Samoa, the Solomon Islands, New Caledonia and Kiribati. Fiji is a beneficiary of the GSP schemes of 21 countries including those of Australia, Canada, the European Union, Japan, New Zealand and the United States

Regional

Fiji is a member of the Pacific Islands Forum. It has also signed the Pacific Islands Countries Trade Agreement (PICTA), under which member countries agree to liberalize trade in goods. It also has duty-free access to the Australian and New Zealand markets under the South Pacific Agreement on Regional Trade and Economic Co-operation (SPARTECA). It is a member of the Melanesian Spearhead Group (MSG) Papua New Guinea, Solomon Islands and Vanuatu eliminate tariffs on trade between themselves.

It is currently negotiating an Economic Partnership Agreement with the EU through the Pacific configuration.

Multilateral

Fiji is a member of the WTO and extends at least MFN treatment to all its trading partners.

NEED PRIORITIES

Priority areas for Fiji are; assistance in EPA negotiations; increased training of specialist; review and streamlining of Fiji's trade arrangements in the various forum; assistance for compatibility of trade policies with the regional integration programme and the EPA; design implementation timeframes and improve capacity and facilities for testing and accreditation of imports.

Source: Commonwealth Yearbook 2005, Fiji Ministry of Foreign Affairs and External Trade, UNCTAD, World Fact Book, WTO Secretariat.