RESTRICTED
WORLD TRADE WT/TPR/G/24
21March 1997
ORGANIZATION(97-1179)
Original: English
TRADE POLICY REVIEW
FIJI
Report bytheGovernment
Pursuant totheAgreement Establishing theTrade Policy Review Mechanism (Annex 3ofthe
Marrakesh Agreement Establishing theWorld Trade Organization), Fiji'sGovernment 'sinitial policy
statement isattached.
Note:Thisreport issubject torestricted circulation andpress embargo untiltheendofthemeeting
oftheTrade Policy Review Body onFiji.Fiji WT/TPR/G/24
Page iii
TABLE OFCONTENTS
Page
I. MACROECONOMIC PERFORMANCE 1
II. TRADE POLICIES AND PRACTICE 1
III. SECTORAL TRADE POLICY OBJECTIVES AND DEVELOPMENTS 2
IV. TRADE POLICY INSTITUTIONAL FRAMEWORK 5
V. TRADE POLICY IMPLEMENTATION 5
VI. ECONOMIC ENVIRONMENT AND FACTORS INFLUENCING TRADE 7
VII. CONCLUDING REMARKS 8Fiji WT/TPR/G/24
Page 1
I. MACROECONOMIC PERFORMANCE
1. TheFijieconomy recorded amoderate growth of1.4percentin1995, mainly duetothe
downturn initstwomajor industries: sugar andtourism. Adverse weather affected thesugar cane
harvest andtourist arrivals levelled offafterarecord 1994 season. Thelatest estimate indicates that
theeconomy willrebound toabout 4.4percentgrowth in1996. Sugar andgoldproduction areexpected
toincrease. Tourist arrivals areprojected tobehigher than1995. Themedium termperspective projects
asustainable 3percentgrowth annually, overthenextthree years.
2. Fiji'seconomic growth inthelastthreeyears wasachieved mainly through strong performance
oftheexport sector. Afavourable exchange rate,increase demand forourexports, secured export
markets, increased production, aswellas,ourability toconsistently supply export products, havebeen
some factors contributing tothisgrowth. Inaddition, theGovernment policy ofexport development
hasexpanded anddiversified non-traditional exports through increased foreign anddomestic investments
under thetaxfreefactory/tax freezonescheme. Globalization hasassisted indiversifying markets.
3. Thecurrent account isexpected torecord surpluses in1996andthemedium term. Fiji'sforeign
reserves position iscomfortable ataround fivemonths ofimport cover. External debtisabout 8.1per
centofGDP, andexternal debtservicing, at2.5percent, isrelatively lowandcontinues todecline.
Inflation wasat3.2percentinFebruary 1997 andbroadly inlinewiththose ofFiji'smajor trading
partners.
4. Fijirecognizes thechallenging tasks required totakefulladvantage ofitsfullpotentials for
economic growth andsocial progress. Inparticular, theGovernment isaware ofthepotential threat
thatitsrising fiscal deficit mayhaveonreducing national savings, crowding outofprivate sector
investments, inflation andinternational competitiveness. Thedeficit isexpected toincrease fromless
than1percentofGDP in1995 toover7percentin1996 andisfurther expected toincrease over
8percentin1997. However, thesizeofthedeficit willbereduced, ifnoteliminated, inthemedium
termanddebtwillbebrought down toasustainable level. Ongoing effort willberequired toachieve
theGovernment 'sobjective ofbalanced budget andmanageable debtlevels, inthemedium term.
5. TheGovernment willcontinue tofacilitate andplayacatalytic roleinproviding anenvironment
thatisconducive toprivate sector growth. Inlinewiththisobjective, itwillfocus onthefollowing
issues: thedevelopment ofitshuman resources, development andimprovement ofitsinfrastructure,
andpromotion ofdomestic andinternational competitiveness, through improved efficiency initslabour
andservices.
II. TRADE POLICIES AND PRACTICE
6. Tradeliberalization,economicderegulationandinvestmentpromotionhavesince1987constituted
keyelements ofFiji'snewdevelopment strategy. In1989, theGovernment announced acomprehensive
structural reform programme, aimed atimproving thelonger-term growth prospects. Toward thisend,
Fijiembarked onaphased programme fortheelimination ofquantitative import restrictions andthe
reduction ofimport tariffs; financial market deregulation; abolition ofstatutory wage guidelines;
andpromotion ofenterprise-based wage bargaining; taxreform; public enterprise reform; andexport
promotion anddevelopment.
7. Fiji'stradepolicyobjectivesincludeprogressiveremovaloflicencesandquantitativerestrictions,
tradeliberalization, andtradepromotion. Fijiencourages tradediversification bypromoting theexport
ofnon-traditional goods andservices. Inrecognizing private sector astheengine foreconomic growth,WT/TPR/G/24
Page 2Trade Policy Review
efforts aredirected atcreating aconducive environment forprivate sector growth. Toward thisend,
Fijiisintheprocess ofputting inplaceclearandtransparent investment policy statement andguidelines.
Promotion ofafairtrading environment isalsohighontheagenda.
8. Three important legislations arenowinplace. First, istheNational Trade andMeasurement
Decree 1989, which ensures accurate packaging andlabelling requirements ofproduct contents.
Secondly, theFairTrading Decree 1992, aimstopromote atrading environment forconsumers and
business inwhich allparticipants inthemarket place aretreated fairly andequitably. Thirdly, the
Trade Standards andQuality Control Decree 1992, ensures thatgoods andservices imported
manufactured anddistributed inFijiareofuniform standard.
9. Initspolicy statement, Fijihasemphasized theneed toensure andenhance Fijiproducts
competitiveness intheinternational markets. Toalarge extent, thegrowth ofnon-traditional exports
andthemanufacturing sector aretheresult oftheemphasis onexport development.
10. Fijirecognizes thattheprivate sector operating inopenmarkets willbethedriving force of
theeconomy. Anefficient andexpanding private sector willbethemain creator ofemployment and
rising incomes.
III. SECTORAL TRADE POLICY OBJECTIVES AND DEVELOPMENTS
11. Sugar industry dominates theagricultural sector andaccounts for82percentoftotalagricultural
exports. Itwillremain thecentral pillar oftheagricultural sector inthefuture. Atthesame time,
theGovernment willalsobefocusing efforts overthecoming years towards diversifying agricultural
production intoother export earning crops. Fijihasidentified those non-sugar commodities inwhich
ithasacomparative advantage andwhich offerthegreatest opportunity forexport earnings. These
are:coconuts andcopra, ginger, dalo, yaqona, fresh fruitandvegetables. These crops willbethe
primary focus oftheGovernment 'sefforts during 1997andonwards. Whilst recognizing theimportance
ofbeing export orientated, Fijiismindful oftheneedforfoodsecurity, especially, because ofitsproness
toclimatic andother natural disasters.
12. Fisheries exports aregrowing rapidly, especially intheareaoffresh "sashimi" tuna, pearls
andbech-de-mer. Theprimary objective oftheGovernment 'sfisheries policy istoexpand export-
oriented production ofallmarine products, andatthesame timeensure thelong-term sustainability
ofitsmarine resources.
13. Fijienvisages timber export earnings toreach $100 million bytheyear2000. Under the
Government 'sreforestation programme, atotal50,800 hectares ofhardwood plantation hasbeen
established and85,000 hectares aretargeted tobeestablished bytheyear2000. Inlinewiththe
Government'spublicenterprisesreformpolicy,afeasibilitystudytocorporatizethehardwoodplantations
hasbeencompleted andisbeing examined bytheGovernment. AHardwood Plantation Management
Company willbeestablished tomanage theforest andprepare forlarge scaleharvesting, processing
andexporting from theyear2000.
14. Fiji'smanufacturing sector policies aredesigned toenhance factor market efficiency toattract
foreign capital byoverhauling thelicensing system, improving thelabour market through revised wage
bargaining, andreducing tradeandproduction distortions associated withexcessive tariffandnon-tariff
barriers.Fiji WT/TPR/G/24
Page 3
15. Fijihasmade good progress inreducing non-tariff barriers andprotective tariffs. The1994
and1995 budgets removed import licensing onallbutoneproduct -lubricating oil.Initially, high
tariffs ofbetween 50percentto70percentreplaced licences, toallow domestic producers timeto
adjust theiroperations tochanging competitive conditions. Thetariffs havesincebeengradually reduced
insubsequent budgets. Asaresult, thestandard fiscal tariffs fellto25percentin1993and22.5percent
in1995. In1992, aValue Added Taxwasintroduced andlevied onallgoods andservices. Thiswas
inlinewiththeGovernment 'staxreform measures thatitintroduced in1993tobroaden thetaxbase.
16. Trade liberalization hashadmixed impact inthemanufacturing sector. Some firms have
experienced increased efficiency asaresult ofinternal restructuring andintroduction ofnewinitiatives,
suchasinvestment innewtechnology, improved skills, newsourcing destinations andnewexport
markets. Others increased theirexport orientation oradjusted theirinput mixtothechanging price
structure. Resource shifts havetaken place, butmost havebeenwithin enterprises, withlittleloss
ofemployment. Inthepastlocalfirms hadover-diversified tocapture alarger share oftheFijian market.
After tradeliberalization, theybecame more targeted andfocused theiroperations onfewer activities.
They focused theiractivities, especially, inthose sectors where theycould compete internationally.
17. Tofacilitate andincrease theinternational competitiveness ofindustries, theGovernment has
introduced andimplemented newlegislation ontrade standards andquality control andencouraged
firms toadopt theISO9000accreditation. Whilst itisthelong-term aimoftheGovernment tocreate
acompetitive economy, intheshorter term, itconsiders necessary toprovide export incentives to
encourage thedevelopment ofnon-traditional exports.
18. Output inthemining sector isexpected toincrease by23percentin1997, withfurther increases
projected inthemedium term. With theformulation andimplementation ofaMinerals Policy and
therelease ofaPromotional Document in1997, theprojected GDPcontribution ofthesector isexpected
toincrease further asinterest frommineral investors onmining prospects increase duetotheprovision
ofaclear andtransparent policy guideline.
19. Import ofpetroleum products represents asignificant sliceofFiji'senergy bill.Toimprove
efficiency inthepower sector, FijiElectricity Authority iscurrently undertaking aninstitutional
strengthening exercise inpreparation fortheindustry reconstructing. Corporatization oftheFEAis
tocommence attheendof1997. FEAiscurrently thenatural monopoly producer ofelectricity. Some
electricity isalsogenerated bytheFijiSugar Corporation. Partoftheindustry restructuring review
willexplore thepossibilities ofincreasing competition inelectricity generation. Thetransport sector
isthelargest consumer ofimported petroleum products. Duetoincreasing economic activity, theimport
ofpetroleum products islikely toincrease infuture.
20. Thepower sector plays acritical roleintheproduction ofFiji'sexports. Toimprove efficiency
inthepower sector, astudy iscurrently underway toexamine institutional strengthening needs ofthe
FijiElectricity Authority (FEA), Fiji'ssoleproducer andsupplier ofelectricity. Further study will
explore ways inwhich competition could beintroduced inthissector before corporatization. The
Government iscommitted toimproving efficiency inthissector. Rural electrification continues to
begiven highpriority sothatitcanassist inimproving living conditions andenhancing socio-economic
opportunities fortherural people.
21. In1993, theFijiGovernment endorsed andadopted theNational Environment Strategy, a
broad-based programme ofaction, intended toensure thatFijifollows apathofsustainable development.
TheSustainable Development Billthatwillprovide thelegal framework forsound environmental
management inallsectors oftheeconomy, iscurrently being examined bytheGovernment.WT/TPR/G/24
Page 4Trade Policy Review
22. Regarding theindustrial sector, theGovernment recognizes theneedtoinvolve thecommercial
industries inallaspects ofenvironmental planning andmanagement. Inview ofthisobjective the
"polluter-pay" basis and"self-regulation" principles hadformed thebasis fortheenvironmental
management andpollution control regulatory framework thatwasestablished inthenewlegislation.
23. Fijirecognizestheimportanceofhavinginplaceanefficientservices'sectorforthedevelopment
ofitsexports andimplementation ofitstradepolicies. In1996, thesector accounted forapproximately
70percentofGDP.
24. Tourism isFiji'ssingle largest export earner accounting forabout 20percentofGDP. It
isanimportant areaforgrowth andefforts areunderway tobroaden therange oftourism services,
including moving intoareassuchaseco-tourism andculture-tourism. TheGovernment policy continues
toemphasise private-sector participation andperformance andisaddressing issues, suchas,airaccess,
thestructure ofaccommodation, expanding thetourism product, promoting Fijiinnewandexisting
markets, andproviding trained workers tomeetthechanging human-resource needs.
25. Significant progress hasbeenmade intheareaofcapital market development. TheCapital
Market Development Actwillnowregulate themarket reform andco-ordinate further development.
Trading atthestock exchange hasincreased. More companies arenowlisted ontheexchange. An
active capital market willraisetheefficiency ofintermediations, promote domestic savings andincrease
theeffectiveness ofthemarket-based implementation ofmonetary policy.
26. Airtransport plays avitalroleinthetransportation ofexports inagricultural products and
other perishable items. Fijirecognizes thatgreater competition ininternational flights would provide
abetter foundation onwhich tobasegrowth intrade, tourism andthedomestic economy. Flight
frequencies intoAsiaandNorth America haveincreased inthepasttwoyears. However, thechallenge
forthesector remains thefurther liberalization ofaccess rights toencourage abroad baseofcarriers
thatwould broaden market access intoAsiaandEurope.
27. Fijiexports more than70percentofitsexports bysea. TheGovernment recognizes the
important ofhaving anefficient portservice andisintheprocess ofcorporatizing thePorts Authority
ofFiji,toimprove theperformance ofportoperations. Given Fiji'sgeographical structure, itisalso
important tohavewell-established domestic shipping services. Seatransport provides vitallinks to
remote islands, andtoimprove services totheouterislands, theGovernment hasintroduced theshipping
service franchise subsidy scheme. Thisscheme willprovide asubsidy totheprivate shipping company
thatwinsthetender, toservice theotherwise unprofitable routes toouter islands.
28. Fijicurrently hasawelldeveloped butlargely monopolized telecommunications sector. A
review ofthesector undertaken in1996 revealed thatlarge efficiency gains could beachieved ifthe
Government deregulated thesector toallow forcompetition. TheGovernment istherefore pursuing
thederegulation ofthesector thisyear. Thuscompetition inthesector willencourage improved services
andlower prices.Fiji WT/TPR/G/24
Page 5
IV. TRADE POLICY INSTITUTIONAL FRAMEWORK
29. Trade policy administration istheresponsibility ofseveral Ministries andDepartments and
government statutory bodies. Thisincludes theMinistry ofCommerce, Industry, Trade andPublic
Enterprises, theMinistry ofFinance, andEconomic Development, Department ofInland Revenue,
Customs Department, theFijiTrade andInvestment Board andtheReserve Bank ofFiji.
30. Several domestic lawsandregulations provide thelegal framework fortheimplementation
oftradepolicies. TheGovernment isexamining anewdraftCopyright Actthatwould takeintoaccount
changes tocopyright matters inFiji,overthepasttwodecades, andensure consistency withtheWTO
Agreement ontheTrade-Related Aspects ofIntellectual Property Rights. Intheabsence ofanAnti-
Dumping Legislation, thecurrent FairTrading Decree, willbemodified toincorporate anti-dumping
issues.
31. Theformulation andreview oftradepolicies isvested intheMinistry ofCommerce, Industry,
Trade andPublic Enterprises. TheMinistry carries outthistaskinconsultation withother Ministries
andDepartments andstatutory bodies thatadminister other aspects oftrade policy. Given Fiji'spush
forgreater private sector involvement, anincreased emphasis isplaced onconsulting withprivate sector
organizations andbusinesses.
32. Theprocess oftrade policy formulation involves Cabinet approval, publication ofthebill,
approval byParliament, consent bythePresident andpublication oftheActintheGovernment Gazette.
33. TheJudiciary isresponsible forresolving alldisputes related totrade.
34. Inrecognition ofitsopeneconomy, Fijihasencouraged participation intrading arrangements
tousethese channels forsecuring andenhancing export markets andtoultimately foster international
economic cooperation. Fijiissignatory tothebilateral trading arrangements withPapua NewGuinea
andTonga, andisamember oftheregional trading agreements SPARTECA andtheEU/ACP -Lomé
Convention. Besides being amember oftheWTO, FijialsousestheGSPschemes forafewresources
based products. Fijiisalsopursuing Bilateral Trading Agreements withother Forum Island Countries
such asVanuatu andSolomons andisalsointheprocess ofdiscussing onewiththeAustralian
Government.
V. TRADE POLICY IMPLEMENTATION.
35. Theprogressive removal ofsubstantial licensing requirements andquantitative restrictions has
beenamajor component ofFiji'sexport-oriented trade policy reform. Whereas 46items wereunder
import licence control in1988, by1996 there wasonlyone,lubricants andhydraulic fluids. Besides
goldandsugar, anexport licence, based onstandards (minimum size), isrequired forunprocessed
trochus shells, toavoid over-exploitation.
36. TheFijicustoms tariff isasingle-column tariff. With effect from1January 1989, Fijifully
implemented the1983Harmonized Commodity Description andCoding System (HS)oftheBrussels
Customs Co-operative Council (CEC), fortheclassification ofitsimports andexports. Thissystem
replaced, theoldNomenclature (CCCN). Currently, thelevel anddispersion ofthecustoms duty
rates, ranges from zero percentto35percent. Fijigrants tariff preferences toTonga and
Papua NewGuinea under theBilateral Trade Agreements.WT/TPR/G/24
Page 6Trade Policy Review
37. Fijiusedthe1950 Brussels Definition ofValue until1January 1997, when itconverted to
theGATT Valuation System. UntilJune1992, thereweretwotypesofimport duties: avariably-related
fiscal dutylevied forprotection andrevenue-raising purposes, andaflat-rate customs dutyadditionally
levied forrevenue-raising reasons. Witheffect fromJuly1992, theCustoms Duty wasdropped, and
replaced bya10percentValue-Added Tax(VAT). ThisVAT, introduced aspartofamajor taxreform
package, wasintended tobroaden thetaxation base, andtoreduce thetaxburden imposed onforeign
trade flows. Indoing so,theideawastoshiftthefocus from indirect taxcollections todomestic
consumption.
38. Fiji'sexports arecurrently subject tothefollowing rules oforigin (ROO) provisions:
- Exports toEU: Lomé Convention ROO,
- Exports toGSPdonor countries: GSPROO;
- Exports toNewZealand andAustralia: SPARTECA, ROO.
Fijialsoapplies rules oforigin provisions inthefollowing Bilateral Trade Agreements:
- FijiandTonga;
- FijiandPapua NewGuinea.
39. Trade liberalization reforms inFiji,begun withthe1989mini-budget, which promulgated the
replacement ofimport licence requirements for34manufactured products withtariffs. Tariff rateswere
setbetween 50and70percent(fiscal andcustoms duties combined), toallow localproducers time
toadjust totheincreasingly competitive market environment. Subsequent budgets stipulated thegradual
reform ofcustoms 'tariffs. Interms ofareduction oftariffceilings andtheensuing decline ofaverage
tariff levels.
40. The1990budget sawtariffreductions fortextiles, motor vehicles andselected imports, required
bythetourism industry. There alsowasalowering offiscal dutyceilings of50to30percenton
fruit, vegetables andjuices. Fiscal dutyonkeyindustrial imports, suchascomputers, communication
andtransportation equipment wasreduced from30percentto10percent. The1991budget announced
a50to40percentfiscal dutyreduction formostproducts, freedfromimport licensing in1989. There
alsowasaproportional decline infiscal duty, forthemajority ofgoods inthetariff schedule.
41. Also, export duties levied onsugar, molasses andgoldwere reduced from 5to3percent.
The1995budget further reduced thestandard fiscal tariff dutyby2.5percentto22.5percent. The
1996 and1997 budgets haveannounced thatthere willbenofurther reduction inthestandard fiscal
tariffs untilsignificant deregulation progress hasbeenmade inother areas, suchaslabour andfinancial
sectors.
42. Asindicated above, theGovernment iscommitted toitstrade liberalization programme, and
ismonitoring closely thepacewithwhich itwillcontinue infuture. Inviewofconcerns raised by
localproducers affected bylossofprotection theGovernment initiated studies in1991, 1992and1994
tomonitor theimpact oftradeliberalization. TheGovernment hasrecently setupanindependent panel,
comprising private sector representatives tofurther review theimpact ofimport deregulation.Fiji WT/TPR/G/24
Page 7
VI. ECONOMIC ENVIRONMENT AND FACTORS INFLUENCING TRADE
43. In1989,theGovernmentintroducedkeypolicyelements,tomovetowardssustainableeconomic
growth. Along withthosepolicies, anumber ofotherpolicy measures havebeenimplemented toachieve
these objectives.
44. Overtheyears,Fiji'sexchangecontrolshavebeenrelaxedinareas,suchasoffshoreinvestments,
operating andcapital profits, andretained foreign currency accounts sourced from export proceeds.
Delegations ofpowers tocommercial banks andtheCustoms andExcise Departments werealsorelaxed.
45. Interestrateshavebeenderegulatedsince1987andmarketconditionsprevailinthedetermination
ofallratesinFiji.
46. Injectingfiscaldisciplinethroughreductionsinpublicsectorexpenditureanddeficitsisapriority
policy move bytheGovernment toincrease andsustain economic growth. Inaddition, theGovernment
willfurther develop andimplement abroad baselowratetaxsystem, thatwillensure thatrevenue
keeps pacewiththegrowth intheeconomy. Practically thiswillmean improving VAT compliance
andre-examining thecosts andbenefits oftheexisting taxincentives.
47. Onbalance ofpayments, Fiji'soverall position hasbeeninasurplus position forthelastfew
years. Much ofthisisattributed tohealthy receipts fromtourism andtheexport sector. Thecurrent
account hasalsoposted positive balances andthistrend willcontinue. Thecurrent account balance
in1996isestimated at20percentofGDP. Themerchandise account isexpected todeteriorate. Fiji's
capital account willturnaround toadeficit from 1997, accounting forabout 1-2percentofGDP.
48. Thelevel offoreign reserves isexpected toincrease. In1996, thelevel ofreserves was
equivalent tooversixmonths ofimports, much higher thanthetarget offivemonths.
49. Parliament enacted thePublic Enterprise Actattheendof1996. ThisActprovides thelegal
framework forthereform oftheGovernment 'scommercial enterprises. In1997, theGovernment
willbepursuingtheimplementationofitspublicenterprisereformpoliciesfocusingonpublicenterprises
involved intheprovision ofinfrastructure suchasports, water, electricity andtelecommunications -
improving theinputs totheprivate sector inFijiandlowering thecosts ofdoing business. Oneof
thecrucial aspects ofthereforms isindustry restructuring toremove barriers tocompetition andcreate
alevelplaying fieldbetween private andpublic sector.
50. Oninvestment, totalgross fixed investment asapercentage ofGDP hasbeenlowforthelast
fewyears, bordering around 13percentforthelasttwoyears. Much ofthedecline inGross Fixed
Investment inrecent years reflects lowlevels ofprivate sector investments. In1996, Cabinet endorsed
anInvestment Policy Statement forFijithataimstomake thepresent investment approval system more
investor friendly. TheInvestment Policy isbased onprinciples oftransparency andismarket driven,
rather than, regulatory innature.
51. In1996, theoverall objective oftheGovernment 'sexport-led growth strategy wastogenerate
adequate growth toallow fortheabsorption ofthehighnumber ofnewentrants intoourlabour market,
andtoachieve animprovement inthestandard ofliving. Oneofthefundament requirements toachieve
sustained levelofeconomic growth istohaveaflexible andcompetitive labour market.
52. There havebeenencouraging signs topromote wage settlements based onproductivity and
performance through collective bargaining attheenterprise level. Some organisations intheprivateWT/TPR/G/24
Page 8Trade Policy Review
sector aretaking thisinitiative. ThePublic Service hasreached agreement withthepublic sector unions
tobasewage settlements onperformance starting from 1996.
53. Asasmall openeconomy dependent ononlyacouple ofmajor exports Fijiisvulnerable to
changes intheinternational trading area. Ofallthechanges inglobal economic environment thataffect
Fiji'strade prospects andopportunities, thetwomost important are:
- TheWTO Agreement, which could leadtolower sugar prices andtheerosion of
preferential margins under theLomé Convention. TheACPGroup however willstill
negotiate toretain asmuch ofthetrade preferences aspossible intothemarket.
- Increasing international competition ingarment industries because ofcontinued erosion
oftariffpreferences intoAustralia andNewZealand under SPARTECA, andeventual
abolition oftheMulti-fibre Agreement andimport quotas.
- More generally, initiatives suchasNAFTA, theCloser Economic Relationships (CER)
between Australia andNewZealand, andtherecent commitment bytheAPEC Group
toattain freetradebytheyear2020, willleadtomajor changes inproduction andtrade
patterns.SmalleconomiessuchasFijiwillbeprofoundlyaffectedregardlessofwhether
itchooses toparticipate actively ornot.
54. Atthenational level, attaining international competitive quality andstandards isamajor obstacle
toFijiexporters. Inaddition, expertise andmarketing skills isaconstraint tothepenetration ofnew
andunknown markets. Distance tomarkets andvulnerability ofsmall-island economies remain a
consistent constraint totrade.
VII. CONCLUDING REMARKS
55. Whilst theGovernment iscommitted toitstrade liberalization policy measures, ithasnow
reached astage where itneeds tocarefully monitor thepaceofimport liberalization, inorder tofind
thebalance where Fijireduces protection onlytothepointtowhich itcontinues tospurlocalefficiency,
productivity, andcompetitiveness without sacrificing largepartsoflocalbusiness. Withthisinmind,
theGovernment willadopt agradual approach tofurther liberalization infuture, whilst ittakesabroader
lookatitsderegulation policy, withtheviewtoreducing existing highcoststructure ofbusiness.
56. Legal frameworks toaccommodate policy changes andfacilitate private sector development
willbeanimportant areaoffocus bytheGovernment.
57. Toprovide greater transparency, harmonization oftariffs, quarantine regulations, andstandards
willcontinue tobeencouraged.
58. TheServices Sector willbeanimportant areatobedeveloped forexport inthefuture, and
theGovernment iscurrently intheprocess offormulating aServices Sector Policy thatwould facilitate
thismove, andprovide greater transparency intheregulations andpolicies governing sector.
59. Fijiiscommitted toandwillcontinue toprovide support totheprivate sector inthefuture
through provision ofcompetitive enterprise environment, improvement ineconomic infrastructure,
anddevelopment ofhuman resources.Fiji WT/TPR/G/24
Page 9
60. Inrecognition oftheopenness ofitseconomy Fijihasjoined andparticipated actively inthe
various regional andinternational forums. Since itsaccession totheWorld Trade Organization on
16January 1996, and,despite thescope andcomplexity ofthework involved, Fijihascontinued to
make modifications toexisting regulations andlegislations, update itsnotification requirements, and
implement various measures incompliance withitscommitments intheWTO.
61. Thepreparatory work forFiji'sfirstTrade Policy Review hastaught usmany lessons. Itwill
nowenable us,withtheassistance oftheverycomprehensive Secretariat Report, toaudit ourtrade
policies andtrading environment toensure thatwegetmaximum economic benefits fromthevarious
changes toourtrade development policies.
62. Fijihasrealised theimportance offreeandopentrade, andwill,therefore, continue toconduct
itstrade policy inatransparent andfairmanner.