Joint press statement of the EU and Fiji on the implementation of the EU-Pacific interim Economic Partnership Agreement

This article is brought to you in association with the European Commission.

Valdis Dombrovskis, Executive Vice-President of the European Commission and Commissioner for Trade, and Honourable Manoa Kamikamica, Deputy Prime Minister and Minister for Trade, Cooperatives, Micro, Small and Medium Enterprises and Communications of Fiji are pleased to announce the further strengthening of bilateral trade relations, through the full implementation of the interim Economic Partnership Agreement (EPA) between the European Union and the Pacific States.

The IEPA is a trade and development agreement, which liberalises bilateral trade, in order to promote sustainable development and the integration of Fiji into the world economy. While the European Union had already eliminated customs duties and quotas on all imports originating from Fiji, the Government of Fiji has now taken the decision to phase out the duties in the committed tariff lines on imports from European Union Members States. These are referred to as committed basket of tariff lines.

Tariffs on selected imports from the European Union will remain or continue to apply, primarily to protect Fijian food security and the development of domestic value chains. This is called the “exclusion basket of tariff lines”.

The effective implementation of the IEPA and its tariff liberalisation commitments is expected to further enhance trade opportunities for businesses and investors. The current tariff phase out will also ensure that cheaper inputs are available for products made in Fiji, increasing the competitiveness of locally produced goods, and supporting both local industrial development and integration into global value chains.

In addition, the IEPA plays a pivotal role in facilitating cooperation on trade and investment and on supporting the development of value chains, including through a unique concession by the EU – the so called “Global sourcing” provision. Once operational, these provisions will allow Fiji to export processed fish to EU that are sourced from approved foreign flagged vessels. Fiji hopes to attract more investments to emulate similar success in fisheries exports to the European Union member states as its fellow IEPA Partner, PNG.

The EU’s bilateral and regional trade-related development cooperation supports Fiji in the implementation of the EPA, for instance to better comply with EU market access standards, upgrade its productive sectors, improve the business environment and better understand EU’s regulations and trade rules.

The EU and Fiji signed the EPA in 2009. While the EU started provisional application immediately afterwards, Fiji decided to start applying it in 2014. The final tariff liberalisation is a crucial step in developing and diversifying bilateral trade between Fiji and the European Union.

Executive Vice-President Dombrovskis and Deputy Prime Minister Kamikamica affirm their shared interest to strengthen the longstanding bilateral trade and economic relationship, and welcome the decisive progress towards effective implementation of the Agreement.