EU & Fiji strengthen trade relations with full implementation of IEPA

Valdis Dombrovskis, executive vice-president of the European Commission and commissioner for trade, and Manoa Kamikamica, deputy prime minister and minister for trade, cooperatives, micro, small and medium enterprises and communications of Fiji, have announced the further strengthening of bilateral trade relations between the European Union (EU) and Fiji through the full implementation of the interim Economic Partnership Agreement (IEPA) between the EU and the Pacific States.

The IEPA, a trade and development agreement, aims to liberalise bilateral trade to promote sustainable development and facilitate Fiji's integration into the global economy. While the EU had already eliminated customs duties and quotas on all imports from Fiji, the Fijian government has now committed to phasing out duties on a specified set of tariff lines for imports from EU Member States. These are referred to as the 'committed basket of tariff lines', the EU and Fiji said in a joint statement.

However, tariffs on selected imports from the EU will continue to apply in certain areas to support the development of domestic value chains. This protective measure is known as the 'exclusion basket of tariff lines.'

The effective implementation of the IEPA and its tariff liberalisation commitments is expected to create new trade opportunities for businesses and investors. The current tariff phase-out will also ensure that Fijian industries have access to cheaper inputs, thereby increasing the competitiveness of locally produced goods and supporting both local industrial development and integration into global value chains.

The IEPA also plays a crucial role in facilitating cooperation on trade and investment, particularly through the 'Global Sourcing' provision, a unique concession by the EU that supports the development of value chains. The EU's bilateral and regional trade-related development cooperation further assists Fiji in implementing the EPA, helping the country to better comply with EU market access standards, upgrade its productive sectors, improve the business environment, and understand EU regulations and trade rules.

The EU and Fiji initially signed the EPA in 2009. While the EU began provisional application immediately, Fiji chose to start applying the agreement in 2014. The final step of tariff liberalisation marks a critical milestone in developing and diversifying bilateral trade between Fiji and the EU.

Executive vice-president Dombrovskis and deputy prime minister Kamikamica have affirmed their shared interest in strengthening the longstanding bilateral trade and economic relationship between the EU and Fiji.

Fibre2Fashion News Desk (DP)